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# Right Issue Calculator Home > Calculators > Right Issue Calculator

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#### What is right issue?

A rights issue in corporate action is when a company offers existing shareholders the opportunity to buy additional shares in the company at a discounted price. It's a way for the company to raise more money without going to the general public or taking on debt.

Here's a simple example: Let's say you own 100 shares in a company called ABC Corporation. ABC Corporation decides to do a rights issue, offering existing shareholders the chance to buy one additional share for every five shares they already own at a discounted price of Rs 10 per share. This means you have the right to buy 20 additional shares (100 shares ÷ 5) at Rs 10 each during the rights issue.

If you decide to exercise your rights and buy those additional shares, you'll pay Rs 200 in total (20 shares x 10 per share) for the new shares. This helps ABC Corporation raise more funds while giving existing shareholders the opportunity to increase their ownership in the company at a discounted rate.

Rights issues are often used by companies to raise capital for various purposes such as funding expansion plans, reducing debt, or financing acquisitions. It's a way for companies to involve their existing shareholders in the growth and development of the business.

#### What is the right issue Calculator?

A rights issue calculator is a tool that will help you figure out how many additional shares you can buy and how much it will cost during a rights issue.

Here's how it works: You tell the calculator how many shares you have, and it uses that information along with the terms of the rights issue (like how many extra shares you can buy for each share you own and the price) to show you how many extra shares you're allowed to buy and how much it will cost.

For instance, if you own 100 shares and the rights issue lets you buy one extra share for every five you already have at Rs 10 each, the calculator will tell you that you can buy 20 extra shares for a total of Rs 200.