What Is a partly paid rights issue?

A partly paid rights issue is one where shareholders don’t pay the full issue price upfront when applying for rights shares. Instead, the payment is made in instalments, as and when the company calls for it.

• At the time of application, investors pay only a portion of the total issue price (for example, 25% or 50%).
• The remaining amount, called call money, is paid later in one or more stages when the company makes the payment call.
• Once the entire amount is paid, the shares become fully paid-up and are treated like regular equity shares.

Example: If a rights issue price is ₹100 per share and the company asks for ₹25 at application and ₹75 later, investors pay ₹25 per share initially. The balance ₹75 will be payable when the company announces the call.

The partly paid shares are traded separately under a different symbol (e.g., XYZ-PP) till the entire money is paid.