Rights Issue

Check the latest updates about current and upcoming rights issues in 2025. This list of the latest rights offers is regularly updated with vetted corporate developments from stock exchanges and SEBI.

Recent and Upcoming Rights Issues

Upcoming Rights Issues FY 24-25

Read Also: Rights Issue 2024 in India

What is Rights Issue?

Rights issue is a popular capital-raising method in which a company offers additional shares to its current shareholders at a discount. Each entitled shareholder is given a “right” based on his current shareholding to preserve his existing ownership level in the company. The offer price is usually substantially below the prevailing price to make the offer more appealing. Offering existing shareholders a way to increase their ownership in the company is an economical and quick method for companies to raise capital. However, before making an investment, investors must carefully examine the fund-raising offer’s terms and the company’s economic state.

Read Also: Latest Share Buybacks in India

Benefits of Rights Issue for Companies

• Easy Fund Raising: Without the large underwriting expenses incurred during fresh problems, the company can obtain cash at reasonable costs from existing investors.
• Retain Control: By allowing existing investors buy new shares, the company may maintain ownership and control ratios. In the case of rights issues share holders don’t grow.

How Rights Issue Works in India?

1. Announcement: The company proposing the legitimation matters formal confirmation of the approval to make ale. All critical information, such as the problem price, the number of shares available for purchase, the subscription deadline, and the entitlement ratio, is included in the announcement.
2. Record Date: The announcement of a record date serves to verify which stockholders may or may not acquire anything. Following the record date declaration, investors must have entries in their demat accounts to be eligible for purchase SHARES during the rights concern.
3. Credit of Rights Entitlement: Right Entitlement may be credited to shareholders in favor of their previous equity on the basis of entitled shareholders. Right Entitlement is a kind of share but represents just the correct request in a civil suit. If not claimed, Rights Entitlement lapse completely.
4. Renunciation of Rights Entitlements: Rights Entitlements can be transferred or sold to other investors and this process is known as renunciation of Rights Entitlements. Since Rights Entitlements are traded on stock exchanges, investors can simply sell these to other investors in part or full. This is a limited-time activity and Rights Entitlements not exercised within the timeframe expire worthless.

SEBI’s New Rights Issue Framework

As per SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2025/31, issued on 11 March 2025, Regulatory has mandated that rights issues must be completed within 23 working days from board approval. This regulation was introduced through the SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2025.

Key Highlights of SEBI Right Issue Circular:

• Faster Process: Rights issues to be completed within 23 working days.
• Subscription Period: To remain open for a minimum of 7 days and a maximum of 30 days.
• Automated Validation: Stock exchanges and depositories must develop a system for automated investor application validation within six months.
• Convertible Debt Instruments: If shareholder approval is required, timelines will be adjusted accordingly.
• Revised Timeline for Rights Issue Processing:
  • Board Approval: Day T
  • In-Principle Approval from Exchanges: T+3
  • Record Date Announcement: T+4
  • Credit of Rights Entitlements (REs): T+9
  • Issue Opens: T+14
  • Issue Closes: T+20
  • Listing of New Shares: T+23

Implementation & Compliance

Stock exchanges, depositories, registrars, and banks are required to update their systems for monitoring and ensuring compliance.

This framework aims to accelerate rights issues, making them more competitive with other fundraising options like QIPs and preferential allotments.