Understanding the dates, entitlement, and allotment process of a Rights Issue is essential for shareholders to correctly calculate eligibility and apply within the timeline. Missing key dates can result in loss of entitlement. (Rights issue dates)

Rights Issue Record Date Meaning

The Rights Issue record date is the cut-off date set by the company to identify eligible shareholders.

If your name appears as a shareholder in the company’s records on the record date, you are entitled to receive Rights Issue benefits. Investors who buy shares after the record date are not eligible.

Key point:
Only shareholding on the record date matters, not the application date.

Rights Issue Ex-Date

The Rights Issue ex-date is the date from which the shares start trading without the rights entitlement.

• Investors buying shares on or after the ex-date will not get Rights Issue entitlement
• The ex-date is usually one business day after the record date

Rights Issue Entitlement Calculation

Rights entitlement is calculated based on:

• Number of shares held on record date
• Rights Issue ratio announced by the company

Formula:

Rights Shares Entitled = Shares Held ÷ Rights Ratio

Fractional entitlements are generally rounded down or adjusted as per issue terms.

How Many Rights Shares Will I Get?

This depends on the Rights Issue ratio.

Example:

• Shares held: 1,000
• Rights Issue ratio: 1:5

Calculation:
1,000 ÷ 5 = 200 Rights Shares

The investor can apply for:

• 200 rights shares (basic entitlement)
• Additional shares (if oversubscription is allowed)

Rights Issue Opening and Closing Date

The Rights Issue opening date is the first day shareholders can apply for the issue.
The closing date is the last date to submit the application.

Typical Timeline:

• Issue opens: 3–7 days after record date
• Issue remains open: 7–15 days

Applications submitted after the closing date are rejected automatically.

Important Points to Remember

• Missing the record date means no entitlement
• Buying shares on ex-date does not give rights
• Entitlement is automatic but application is required
• Applying early does not affect allotment quantity