ppt on issue of right shares in general study

1. Issue of Right Shares Manju Dhameja 28

3. WHY IT IS ISSUED

5. Selling Group and broker dealer participation

6. Subscription price per new share

7. Number of new shares to be sold

8. The value of rights vs. trading price of the subscription rights

9. The effect of rights on the value of the current share

11. NEW ISSUE

13. ADVANTAGES Shares at a discounted Rate Trading the rights on the market Useful for Troubled companies Companies with clean balance sheets use them

14. BENEFITS OF ISSUING RIGHT SHARES More control on existing shareholders No loss to existing shareholder No cost for issuing shares to public Helpful to increase the goodwill of company Capital formation More scientific

15. STEPS FOR ISSUING RIGHT SHARES Right shares must be in ratio of equity shares of existing shareholders 2. Right Issue by 15 days notice 3. Right shares issue must not be opened more than 60 days under SEBI guidelines.

16. OTHER FACTORS TO CONSIDER IN RIGHTS ISSUES Issue Costs Shareholder reactions Control Unlisted companies

17. CURRENT EXAMPLES Religare Enterprises Bampsl Securities EIH Central Bank of India Zodiac Ventures Ltd Brand Realty Services Karnataka Bank Lee & Nee Softwares (Exports) Borax Morarji Indo Asian Finan Gayatri Projects Ramsarup Industries Muthoot Capital Services Rights Issue

18. Thank You