What is a Rights Entitlement Letter?

A Rights Entitlement (RE) Letter is a document sent by the company (or its registrar) to eligible shareholders informing them of the number of rights shares they are entitled to receive in a rights issue, based on their shareholding as on the record date.

It includes key details such as:

• The entitlement ratio (e.g., 1 share for every 3 held)
• The number of REs credited to the shareholder’s demat account
• The ISIN of the RE (unique identification for trading)
• Instructions on how to subscribe, renounce, or trade the REs

This letter serves as a formal intimation of eligibility and helps shareholders participate or transfer their rights before the issue closes.