What is rights issue?

A rights issue is a way for companies to offer more shares to people who already hold their stock. So, if you’re a shareholder, you get the option to buy extra shares — usually at a lower price than the market rate.

If you qualify, you’ll receive Rights Entitlements (REs) directly in your demat account. You can choose to use them to apply for the rights issue, or even sell them on the stock market. Just remember — if you don’t use or sell your REs, they’ll expire and won’t be worth anything.

Learn more about rights issue here.