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Rights issue ratio calculation

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CS Arjun Rajagopal

B.com ACS

738 Points Posted on 27 August 2016

Dear CCI Members,

Please advise the rights issue ratio calculation from the following figures:_

Existing fully paid up shares :30,70,410

No. of shares to be issued :6,57,500

Amount to be raised :Rs. 65,75,000

No. of shareholders: 19

It would be much helpful if calcualtion formula can be mentioned

Replies (1)

P C Agrawal

Registered independent director Past Ch

5233 Points Posted on 29 August 2016

You can offer 2 shares against every 10 shares held ignoring fractions. Rights offer can also have option to apply for additional shares and renounce the right, subject to provisions in the Articles. Resolution can give power to the Board/Committee to allot remaining shares in the manner deemed fit.