What is renunciation of rights shares?

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The renunciation of rights share is the process of renouncing or transferring or selling the rights to other interested investors at a better price.

When a shareholder is not interested in the rights issue offer given by the company, he can choose to renounce his rights rather than let it lapse. The renunciation of rights share can happen either by way of rights entitlement trading or off-market transfer.


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