Who are eligible for rights issue?

Eligibility for a Rights Issue is limited to shareholders whose names appear in the company’s shareholder register on the record date set by the company.

• Existing shareholders on the record date – Only those who hold shares of the company as of the record date are eligible to receive the rights entitlement.
• Renouncees (transferees of rights) – Shareholders who receive the rights can transfer (sell or gift) their entitlement to another person during the rights trading period. The recipient, known as the renouncee, then becomes eligible to apply for the rights shares.

Note: To subscribe and receive rights shares, the eligible shareholder or renouncee must have an active demat account where the newly allotted shares can be credited.