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Rights issue

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 March 2011 Hi,

The present authorised and paid up share capital of the unlisted public company is Rs.1 Crore. the entire capital is held by group of promoters. The company proposes to go in for rights issue by bringing in Rs. 5 crores.

Can anyone pl guide me how to calculate the ratio of shares to be offered for every existing share held.
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Jayashree S Iyer

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Jayashree S Iyer (Expert)
21 March 2011 The ratio will be 1:5 i.e. five shares for every 1 share held.

Experts please confirm the correctness.
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