Zerodha (Flat Rs 20 Per Trade)

Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.

What is a Letter of Offer in a Rights Issue?

A Letter of Offer (LOF) is a formal document issued by a company to its existing shareholders, giving them the right — but not the obligation — to purchase additional shares at a specified price.

It contains comprehensive disclosures about the issue, including terms, entitlement ratio, issue price, timelines, business details, and risk factors, enabling shareholders to make an informed investment decision.