Rights Issues

  • Assessment of funding needs & rights issue viability vis-à-vis other routes
  • Structuring optimal rights issue size, ratio & timing considerations
  • Drafting offer letter statements with applicable regulatory disclosures
  • Leveraging pre-emptive rights mechanism for shareholder value protection
  • Pricing guidance based on trading history analysis and discounted valuations
  • Managing operational processes - appointments, allotment, share transfers etc.
  • Ensuring reservation quota compliance and preferential allotments
Neomile Capital offers end-to-end advisory and execution support for listed firms planning rights issues encompassing assessment of capital needs and viability, structuring the optimal size and rights ratio, pricing guidance to balance discouts while protecting minority shareholders, leveraging existing investor relationships and our execution expertise honed across several issues to drive awareness through promotor backing, ensure complete regulatory compliance across offer letter issuance, filings, preferential allotments, reservation quotas along with progress monitoring support culminating in oversubscribed issues leading to successful listing and trading approvals while publishing post-issue reports that help maintain statutory requirements.
Why Rights issue through us?

Dedicated equity capital market specialist with legal, compliance and operations backgrounds

FAQ

FAQs about rights issues

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A rights issue is a process where listed companies issue new shares to existing shareholders based on their entitlement at a discounted price to raise capital.

Rights issues allow faster equity raising in 60 days, help deepen investor base through shareholder participation and avoid dilution unlike other routes.

The key requirements are profitable operating track record in 3 out of last 5 years, positive networth and no pending share allotments or litigation in relation to prior capital issuance.

The main activities are appointing intermediaries, filing draft offer letter with stock exchanges & SEBI, setting rights ratio & issue price, payment of filing fees, announcements, shareholder approval & allotment, listing approval.

Our execution support covers documentation, compliance management across SEBI & stock exchange norms including filings, monitoring, preferential allotments & post-issue reporting.

Leveraging pricing flexibility and existing investor relationships, most rights issues attain over 90%+ subscriptions and minimum 90% listing gains indicating favorable investor response.