Issue Size (Right Issue) is the total money a company aims to raise from existing shareholders by issuing additional shares.
Issue Size (Right Issue) refers to the total amount of money a company aims to raise from its existing shareholders by issuing additional shares in a rights issue. This amount is calculated based on the number of new shares offered and the price at which these shares are made available to existing shareholders.
For example: If a company's rights issue has an issue size of ₹48.20 crores, it means the company plans to raise ₹48.20 crores from the rights issue by issuing a specific number of shares at a set price to its existing shareholders.
The issue size can be expressed either as the total amount (₹) or as the total number of shares being offered.
This information is typically found in the company's rights issue announcement or offer document and gives an idea of the scale of the fundraising.
Key points about Rights Issue Size:
It indicates the scale of the fundraising being undertaken.
It is determined by multiplying the number of shares offered by the issue price per share.
Rights issues are open to existing shareholders, usually at a price lower than the prevailing market price to incentivise participation.
Formula:
Rights Issue Size=Total Number of Shares Offered× Issue Price per Share
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