Rushil Decor Limited’s board of directors decided to release a rights issue to raise funding, on the 4th of September 2020. The issue price per...
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Rushil Decor Limited’s board of directors decided to release a rights issue to raise funding, on the 4th of September 2020. The issue price per share has been fixed at Rs. 50 and the rights issue is set to close on 5th October 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 Rushil Decor Limited Rights Issue, the proportion issued is 1:3. This means if you own 3 shares of RUSHIL, you’re entitled to 1 share in this rights entitlement.
Important dates to keep in mind for the rights issue
While the rights issue closes on 5th October 2020, here are other dates to keep in mind.
21st September – Listing of rights entitlement on the exchange
21st September – Rights entitlement credited to your Demat account
29th September – 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 29th September 2020.