Hi @Kishtrd , apologies for the delayed response. The drop in stock price is due to dilution. When a company issues new shares at a discount through a rights issue, the total number of shares increases, but the company’s overall value stays the same. This lowers the price per share, causing the stock to fall on the ex-date.
Also, the price can be calculated using a formula called the Theoretical ex-rights Price (TERP), explained here: What effect does rights issue have on stock price?