In general, there are two types of Terms of payment:
- Full Payment at Application: Shareholders must pay the entire issue price upfront when applying for rights shares. For instance, if the issue price is Rs 1.75 per share, the full Rs 1.75 must be paid at the time of application.
- On Call Money: Shareholders initially pay part of the share price and the remaining amount later when the company makes one or more payment calls. The company must collect all outstanding call money within 12 months from the share allotment date.
