The Satin Creditcare Network in an attempt to raise Rs. 120 crore has decided to release a rights issue. The issue price per share has...
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The Satin Creditcare Network in an attempt to raise Rs. 120 crore has decided to release a rights issue. The issue price per share has been fixed at Rs. 60 and the rights issue is set to close on 26th 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 Satin Creditcare Network Rights Issue, the proportion issued is 48:125. This means if you own 125 shares of SATIN, you’re entitled to 48 of its shares in this rights entitlement.
Important dates to keep in mind for the rights issue
While the rights issue closes on 26th August, here are other dates to keep in mind.
12th August – Listing of rights entitlement on the exchange
13th August – Rights entitlement credited to your Demat account
21st 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 21st August 2020.
