I recently received the Rights Issue application form from NCC. If I opt for additional shares @ Rights Issue price, is there a possibility of getting all the additional shares allocated to me?
Hi Ayyappa,
You might or might not receive all the additional units. There is no guarantee that you will receive all the additional shares you applied for.
If any investors not applied for their rights then companies will distribute the left over shares to the investors, who applied for the shares more than their eligibility.
Issue of additional shares other than right issue would depend on what percentage of right shares would have been subscribed by normal means of exercising rights. If only 95% of the right shares are subscribed then oversubscription shares would be allocated for the rest 5%. In case there are more shares being oversubscribed to than there are available, a pro rata allotment will follow.
2 Likes