1. RIGHT ISSUE AND VENTURE CAPITAL SUBMITTED BY: DEEPAK ARORA MUDIT GARG APOORVA CHAUDHARY HITIKA MAKHIJA RADHIKA BHATIA
2. VENTURE CAPITAL IT IS PROVIDED TO YOUNG PRIVATE COMPANIES WHO ARE NOT READY OR WILLING TO TAP THE PUBLIC FINANCIAL MARKET. PROVIDES SUPPORT TO THE GROWING FIRMS DURING THEIR INITIAL STAGES.
8. RIGHT ISSUE IT IS AN ISSUE OF CAPITAL TO THE EXISTING SHARE HOLDERS OF THE COMPANY THROUGH A LETTER OF OFFER MADE IN THE FIRST INSTANCE TO THE EXISTING SHAREHOLDERS ON A PRORATA BASIS. (UNDER SECTION 81 OF THE COMPANIES ACT, 1956).
11. RIGHTS CAN BE EXCERSIZED DURING A FIXED PERIOD(USUALLY 30 DAYS)
12.
13. FORM C- Application by the renouncee in whose favour the rights have been renounced by the original allottee through form b.FORM D- requires for split forms.
14.
15. Who renounce their rights ,wholly or partially, are not eligible for additional shares
16. Shares available due to non exercise of rights by some shareholders are allotted to shareholders who have demanded additional capital
17.
18. VALUE OF A RIGHT Difference b/w market price of a share after the right issue and subscription price P0– S N+1
19. Wealth of a shareholder It is not affected by the rights offering, provided, of course the existing shareholders exercise their rights in full or sell their rights.
