InvestorQ : What does the rights issue mean. If I have just 25 shares of reliance industries, how will the rights issue affect my portfolio.
Rohit Kashyap made post

What does the rights issue mean. If I have just 25 shares of reliance industries, how will the rights issue affect my portfolio.

Answer
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Aditi Sharma answered.
4 months ago


RIL has announced the rights to shareholders in the ratio of 1:15. That means; for every 15 shares held by you, you will be entitled to 1 share. In your case, since you are holding 25 shares, you will be entitled to 1.67 rights shares. However, since you cannot be allotted 1.67 rights shares, you will be allotted 1 share and the amount equivalent to 0.67 shares will be paid in cash.