A Rights Issue of shares is a strategic move by a company to invite its current shareholders to buy more shares at a fixed price.
This allows the company to secure additional funds, which can be channeled into financial needs. Rights issue allows existing shareholders to preserve their proportional ownership and potentially capitalize on the company’s future success.
It represents a vital aspect of corporate finance and offers a win-win opportunity for both the company and its investors.
Types of Right Issues in India
In India, there are two primary types of Rights Issues:
1- Renounceable Rights Issue
2- Non-Renounceable Rights Issue
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