Sir, do we have to buy equal RE shares which we want to apply in RIGHT ISSUE, for instance if I wanna apply for 3,000 lloyd engineering works shares in the issue then I have to buy 3,000 RE shares??
Please answer 
@Neekheeljain Yes, you need to buy 3,000 REs once they are listed in the secondary market. Each RE lets you apply for one share in the issue. You can read this in detail here:
Then this right issue application will not be profitable, why do I will buy 16₹ RE and 32₹ stock (total 48₹) for a stock which is trading at 49₹ in present.
But is it not possible that we can get 100-150 RE and then apply for 3k Shares and get allotment of all??
Hey Nithin, Is there any social media group or channel which you know where I can ask which right issue to apply which I should avoid and other queries regarding right issue etc.
If yes then please let me know.
Thanks
Yes, you can apply for more shares than the REs you hold. Say you hold 150 REs but apply for 3,000 shares. You’ll definitely get 150, but the rest will be considered under additional demand and allotted only if there’s undersubscription. That’s not guaranteed.
Also, if the stock is trading at 49 and you’re effectively paying 48 (16 for RE + 32 for the share), the gain is marginal. There may be no real profit unless the stock moves up or you get additional shares beyond your REs held, again, which isn’t guaranteed.
Hi @Neekheeljain , there’s no official group that I know of, but you can trigger discussions here, maybe tag a few people, and ask for opinions.
Just don’t treat it as advice, and make sure to do your own research before acting on anything.
One should genuinely consider applying for a rights issue only if they believe in the company’s long-term prospects, the fundamentals are sound, and the pricing makes sense. It’s a good way to increase your holding at a discount, not just jump in for a quick profit.
I’ve personally chased a few thinking it’s easy money and failed miserably. 