{"id":26313,"date":"2026-04-03T09:51:48","date_gmt":"2026-04-03T09:51:48","guid":{"rendered":"https:\/\/www.samco.in\/help-support\/?post_type=ht_kb&#038;p=26313"},"modified":"2026-04-03T09:52:05","modified_gmt":"2026-04-03T09:52:05","slug":"what-is-a-rights-issue","status":"publish","type":"ht_kb","link":"https:\/\/www.samco.in\/help-support\/article\/what-is-a-rights-issue\/","title":{"rendered":"What Is a Rights Issue?"},"content":{"rendered":"\n<p>A rights issue is when a company offers its existing shareholders the option to buy additional shares at a price lower than the current market price. It is one of the ways a company raises fresh capital from its existing investor base \u2014 without going to outside investors first.<\/p>\n\n\n\n<p>The offer is a right, not an obligation. You can subscribe, renounce your entitlement, or let it lapse. The decision is entirely yours.<\/p>\n\n\n\n<p><strong>The subscription ratio<\/strong><\/p>\n\n\n\n<p>The company announces a subscription ratio for example, 1:4 means you can buy one additional share for every four shares you already hold at the fixed offer price.<\/p>\n\n\n\n<p><strong>For existing shareholders<\/strong><\/p>\n\n\n\n<p>Since the offer goes to existing shareholders first, it gives you the opportunity to maintain your ownership percentage in the company. If you don&#8217;t participate, your stake dilutes slightly as new shares are issued to others.<\/p>\n","protected":false},"author":65,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":[],"ht_kb_category":[2863],"ht_kb_tag":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26313"}],"collection":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb"}],"about":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/types\/ht_kb"}],"author":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/users\/65"}],"replies":[{"embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/comments?post=26313"}],"version-history":[{"count":1,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26313\/revisions"}],"predecessor-version":[{"id":26315,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb\/26313\/revisions\/26315"}],"wp:attachment":[{"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/media?parent=26313"}],"wp:term":[{"taxonomy":"ht_kb_category","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_category?post=26313"},{"taxonomy":"ht_kb_tag","embeddable":true,"href":"https:\/\/www.samco.in\/help-support\/wp-json\/wp\/v2\/ht_kb_tag?post=26313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}