A Right Issue means an offer of securities by an issuer to its shareholders at a particular date, usually in proportion to their existing holdings. You can read more about it in our Rights Issue Article. Although an equity right issue is more common in practice, right issues can either be debt or equity issues.…
One mode of raising capital through Equity Financing is the Rights Issue. A Rights Issue involves giving existing shareholders the right, not an obligation, to acquire additional shares (new shares) in the company, at a discount (rights offer price) to its current market price. It is structured in the form of an invitation to the…