Chittorgarh.com Logo
Loading...

Rights Issue Renouncee

A renouncee in the rights issue process is a person receiving the rights entitlements in renunciation by paying a price for shares acquired from the seller.

A renouncee is the person buying the rights entitlements in the renunciation process of a rights issue by paying a price for the shares purchased from the seller who is not willing to subscribe to his rights.

A renouncee can apply for rights shares based on the rights entitlements in his possession but cannot apply for any additional rights shares.

Answered on

Frequently Asked Questions

  1. 1. Can I apply for rights shares based only on the REs purchased and not owning any shares as on record date?

    Yes, you can apply for the rights shares even when you did not own any shares of the company as on record date. You can apply for the rights shares in the capacity of a renouncee based on the rights entitlements either purchased from the market or off-market.

    The main criteria for applying to rights issue is having rights entitlement in your possession before the application is made. However, one thing to note in such a case is that the purchaser of the RE, i.e. the renouncee cannot apply for additional shares above their RE holding, unlike eligible shareholders as on record date who can apply for additional rights shares when subscribed to their rights in full.

     


Comments

Add a public comment...