Reasons for Companies to Issue Rights Offering

A company can raise capital by providing the right for its existing shareholders. Existing shareholders can subscribe to newly issued shares in proportion to their existing holdings. A company may use this extra capital to meet its current financial obligations.

A right issue of shares (rights offering) is where a company provides an offer to their existing shareholders to purchase additional shares at a discounted price on a particular ratio proportionate to their existing shareholding.

Learn more about Right Issue of Shares,

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