Announcements

The Spencer’s Retail Ltd in an attempt to raise Rs. 80 crore for the purpose of meeting working capital requirements decided to release a rights issue. The issue price per share has been fixed at Rs. 75 and the rights issue is set to close on 18th August 2020. Here’s a little more about this.

Understanding what a Rights Entitlement is

A company may resort to various means of raising capital while pursuing expansion goals, attempting to achieve a debt-free status or building new assets. One such means is a rights offer. This involves entitling existing shareholders to a specific number of rights as per the ratio set by the company.

Thus, rights entitlement offers existing shareholders the chance to buy more shares in the company at a discounted price over a specific period of time.

In the case of Spencer's Retail Ltd Rights Issue, the proportion issued is 2:15. This means if you own 15 shares of SPENCERS, you’re entitled to 2 of its shares in this rights entitlement.

Important dates to keep in mind for the rights issue

While the rights issue closes on 18th August, here are other dates to keep in mind.

4th August  – Listing of rights entitlement on the exchange

5th August – Rights entitlement credited to your Demat account

13th August – Last day to trade your rights

In case, you do not wish to subscribe to or forfeit your rights, it is advisable to sell these on the market on or before 13th August 2020.