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InterviewSolution
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What Is A Rights Issue For An Ipo? |
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Answer» Rights Issue (RI) is when a listed COMPANY which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a PARTICULAR ratio to the number of securities HELD prior to the issue. This route is best suited for companies who would like to raise capital without DILUTING stake of its existing shareholders unless they do not INTEND to subscribe to their entitlements. Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements. |
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