Corporate Actions

Understand different corporate actions like Rights Issues, Bonus Issues, Dividends, and Stock Splits that impact your investments.

What is a Rights Issue?
A Rights Issue is when a company offers its current shareholders the chance to buy more shares at a discounted price, typically for a limited time. The disc...
Thu, 6 Feb, 2025 at 11:27 AM
When am I eligible for the Rights Issue?
You are eligible if you own shares of the company on the specific "record date" set by the company. On this date, the company checks its list of s...
Thu, 6 Feb, 2025 at 11:29 AM
Why does a company offer a Rights Issue?
Companies initiate a Rights Issue mainly to raise capital. This funding can be used for various purposes such as expanding the business, acquiring new asset...
Thu, 6 Feb, 2025 at 11:30 AM
How many shares will I get under the Rights Issue?
The number of shares you can buy under the Rights Issue is based on a ratio set by the company. For example, a 1:15 Rights Issue ratio means you can buy 1 a...
Thu, 6 Feb, 2025 at 11:30 AM
How can I apply for the Rights Issue?
There are two methods to apply for a Rights Issue: Online ASBA (Application Supported by Blocked Amount): Visit the Self-Certified Syndicate Bank (SCSB) ...
Thu, 6 Feb, 2025 at 11:32 AM
What is Right Entitlement (RE)?
Right Entitlement, or RE, is the specific number of shares you have the right to purchase in the Rights Issue. Keep in mind that RE is only valid for a limi...
Thu, 6 Feb, 2025 at 11:37 AM
How is RE different from regular shares?
Regular shares are bought and sold in the open market based on current prices, while RE gives you the right to buy additional shares at a set discount. RE i...
Thu, 6 Feb, 2025 at 11:40 AM
What is the difference between a Rights Issue and Rights Entitlement?
A Rights Issue is the company’s offer to issue new shares, allowing them to raise funds. Rights Entitlement (RE) refers to the rights given to existing shar...
Thu, 6 Feb, 2025 at 11:41 AM
When will RE be credited to my account?
Your RE will be credited to your Demat account in a dematerialized form before the Rights Issue opens, under a unique ISIN (International Securities Identif...
Thu, 6 Feb, 2025 at 11:42 AM
What can I do with my Rights Entitlement?
With your Rights Entitlement, you have three options: Use your entitlement to purchase the shares and gain ownership. Sell your RE in the secondary ma...
Thu, 6 Feb, 2025 at 11:44 AM