How many rights entitlements can I get?

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The rights entitlements are credited in the ratio of existing holdings as on a record date.

The rights issue is offered in proportion to existing holdings based on which the right entitlements are credited. If the ratio in which the rights share are offered results in fractional rights entitlement, the fraction is ignored and the rights entitlement are credited applying rounding down logic.

Let's take two scenarios to have a better idea of the number of rights entitlement one can expect considering a company announces to offer 2 rights shares for every 15 shares held.

Scenario 1: If you hold 45 shares of the company as on record date, you will be eligible to get 6 shares as rights entitlement as per the ratio decided by the company.

 Scenario 2: If you hold 50 shares of the company as on record date, you will still be eligible to receive only 6 shares as your rights entitlement, since the fractional entitlement is ignored by rounding down to the nearest integer.


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