What Happens if I Don’t Take Up the Rights Issue?

If a shareholder chooses not to apply for the rights issue, the Rights Entitlements (REs) credited to their demat account will lapse after the issue closes.

• A rights issue is voluntary, meaning shareholders are not obligated to subscribe.
• To exercise the entitlement, shareholders must apply for the shares and make the required payment within the issue period.
• If these steps are not completed, the REs expire, and the company may reallocate the unsubscribed portion for the benefit of the company or other eligible investors as per SEBI regulations.