Upcoming Rights Issues in July 2024

A rights issue is a corporation action that allows current shareholders of a company to buy additional shares, generally at a lower price, in proportion to the shares already held. Eligible shareholders will get the right entitlements (REs) in their demat accounts which are meant for applying for the rights issue or can be sold. If the REs are neither sold nor utilized for the rights issue, they will eventually expire and become worthless.

A rights issue allows a company to raise funds by giving existing shareholders the right (but not the obligation) to purchase additional shares at a lower price, in proportion to their current holdings, before a specified date. Rights issues may or may not incur underwriting fees, depending on whether the company opts for an underwritten issuance to guarantee the capital raised.

When a company plans for expansion, a company may opt for a rights issue to raise equity capital, avoiding the fixed interest payments associated with debt. This method can be quicker and more suitable when debt funding is unavailable, unsuitable, or expensive. Companies may also use a rights issue to improve their debt-to-equity ratio, finance acquisitions, or pay off debt to enhance financial health.

List of Rights Issues in July 2024

Inventure Growth & Securities Ltd has announced a rights issue with a rights ratio of 1:4, meaning that for every four shares held, shareholders can purchase one additional share. The face value of the shares is Rs 1, and the premium is Rs 1.33. The record date for this rights issue is July 5, 2024, which is also the ex-rights date.

How to apply for Rights Issue: The Rights Issue offer is updated with ASBA (Application Supported Blocked Amount).

• For the online ASBA process, visit the website of an SCSB (Self-certified Syndicate Bank) and apply.
• For the offline ASBA process, submit a physical application to participate in the Rights Issue at a designated SCSB.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.