Can rights issue be oversubscribed?

Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

The rights issue can be oversubscribed when people apply for additional rights shares over and above their entitlements.

Only the eligible shareholders exercising their rights in full can apply for additional shares above their entitlements. A renouncee cannot apply for additional shares above their entitlements purchased from the stock market or off-market transfer.

Topic: Rights Issue of shares - Definition, Benefits, Eligibility and Prices Article

1 Comments

1. PKJ

| Link|March 17, 2024 5:22:55 PMReply

Can I purchase 100 Right Entitlements and apply for 1000 shares in the rights issue?

Will I get 100 and some amount additional shares?

Find more questions on this topic

What is a rights issue?
Who can apply for rights issue?
Is rights issue mandatory?
Why are rights issue offered?
What are the advantages of rights issue?
How do I apply for the rights issue?
What happens if I do not subscribe to my rights?
Are rights issue good for shareholders?
Can I buy rights issue shares?
Can I sell rights issue?
Can rights issue be applied online?
Can rights issue be sold?
What will happen to my RE shares if I do not apply for rights issue?

Ask Your Question