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Right Issue of Shares

Company decides to issue fresh shares, these should be offered to existing shareholders in proportion to existing persons who are holders of equity shares. ‘Right Issue’ means offering shares to existing members in proportion to their existing share holding. The object is, of course, to ensure equitable distribution of Shares and the proportion of voting rights is not affected by issue of Fresh shares.

Google Review Rating

4.9/5

Market Price

10000/-

Instabizfilings Price

₹ 6779 excl. GST

₹ 7999 incl. GST

Complete Date

30-05-2024
  • You Save INR 2000/- (32%) on the above Service.

    ROC Fees/Governemnt Fees will be charged at actuals

    Late fees if any will be beared by the Client/Customer.

Offers and Discount

No Cost EMI available available over Rs 3,000

10% Discount on your first purchase

18% GST Credit available

Scope of Work:

  • 1. Preparation of Board Meeting for issue of shares by way of Rights Issue

     

    2. Preparation of draft Rights Issue Offer letter (Upto 5 Shareholders) (Circulation to be done by Company);

     

    3. Preparation of Board Meeting documents for allotment of shares;

     

    4. Preparation of documents for attachment in e-forms;

     

    5. Preparation of e-forms;

     

    6. Arranging for Certification of e-forms;

     

    7. Resubmission of e-forms, if any;

FAQs

A rights issue is an offer made by the company to buy additional shares of the company. This is not compulsory, and shareholders can refuse to buy additional shares if they do not see any value in the extra shares in their portfolios.

 

With a rights issue, because more shares are issued to the market, the stock price is diluted and will likely go down.

In case the Rights issue of shares are offered to a Foreign Shareholder, the company has to get a share valuation as per requirements under FEMA.

The rights issue does not require the approval of shareholders, and hence the board can proceed towards the issue. Issue Letter of Offer: On the passing of the resolution, the letter of offer is issued to all shareholders, and the same is sent through registered post or speed post.

The offer will remain open for a minimum of 7 days and a maximum of 30 days. Existing shareholders can accept, reject, or renounce the offer.

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