Fundraising through rights issues experienced a revival this year, with slightly larger transactions hitting the markets.
In 2023, 11 companies raised Rs 7,168 crore through rights issues, compared to 10 companies that raised Rs 3,884 crore in the previous year.
The rights issue is a mechanism available for listed firms to raise money by offering existing shareholders new equity shares. The new shares are typically offered at a discount to the prevailing market price to incentivise investors to subscribe.
If an existing investor doesn’t intend to participate in the rights offering, there is an option to renounce the shares in