Everything you need to know about Ethos Limited Rights Issue 2025

[nithin_kumrr]

@Neekheeljain

If possible then give your review whether to apply or not with all the data available

Hi @Neekheeljain, if you’re looking at this rights issue for any arbitrage opportunity, you can do the maths accordingly. This post explains it well:

Everything you need to know about UPL Limited Rights Issue

Hi @3nadh , apologies for the delayed response. Let’s take UPL as an example. There’s a potential for arbitrage if one can buy the rights to these new shares at a price lower than the expected stock price after the rights issue. When a company announces a rights issue, it offers existing shareholders new shares at a discount. This leads to share dilution, which causes the stock price to drop. Because when new shares are issued at a discount, the total number of shares increases while the com…

@Neekheeljain

what will the company do with the money they want to raise, please.

The company shares the complete details of the rights issue, including utilisation of proceeds, in its LOF (Letter of Offer). You can always refer to that for these details.

In Ethos Limited’s case, out of ₹406.11 crore being raised, ₹310 crore will go toward working capital and ₹96.11 crore for general corporate needs. Full details, including the year-wise plan, are on page 54 of the LOF.

@Neekheeljain

One more question, is there any social media group where curious people regarding rights issue or other corporate action can talk to each other, anywhere may be on Telegram, whatsapp, reddit etc.

Not aware of any such groups.