I hold 300 shares of TATA Power. How many shares am I eligible for recent right issue? What is the mode of payment?

TATA Power Company had issued rights in 2014 in the ratio of 7:50 at a premium of Rs 59 per share. The share has been quoting ex-rights from March 19, 2014.


Hi Shiva,

A rights issue is an issue where the the existing share holders are given the 'right' to subscribe to the shares of any company wanting to raise fresh capital.

The rights entitlement ratio fixed by TATA Power for its Rights issue was 7:50 which means that for every 50 shares held by the existing shareholder, they would have the right to purchase 7 fresh equity shares through the Rights issue.

Normally the issuing company would send you an application asking you of your interest in applying for the Rights issue. You could fill in the application, write a cheque and send it to the Registrar of the issue to apply. Nowadays all IPO's/ Rights issue are supported by ASBA.