currently hindalco's share prices have fallen below rs. 150. Should i opt for Hindalco Right share issue or I should sell the shares i own if they go above my purchase price.
My purchase price is rs. 170 and i have 200 shares.
I will like to know if company send letter of offer for right issue by UPC, is it legal? It is not necessary to send letter by registered post?. In UPC company can join his dirty hands with postal department to obtain UPC mail list. Company have proof of sending letter. However investors are not receiving letters.Delivary proof of investors is not necessary?
I did not receive offer letter from dhampur sugar in oct-03.I collected complains from other 12 investors in my area. and forwardwd complains to company/ Registar/BSE/NSE/Kirit somaiys forum SEBI/BSE/ NSE /investor grievance forum all are proved next to useless in my case.
What further legal procidings should I/we take to get our right to take right shares?
RE:equity
by Mangesh Kumar Dixit on Jun 20, 2006 07:19 PM
Sorry but I did not got the point how a share holder will lose money if he does not subscribe to the rights issue? Please provide some simple and better example..
RE:equity
by Anirudh on Jan 16, 2008 05:42 PM
Simply bcoz the market price would come down depending on the ratio of rights issue. That happens since the earnings per share decreases (shares increases after rights issues but the income remains same to start with). So the price is bound to get adjusted after the ex-date. Again it slowly picks up since the money raised is expected to improve the earnings in long run.
A very important point was missed out by the author is the loss that shall be incured by the share holder if he/she does not subscribe to the rights issue. For example buying ING Vysya Bank at Rs.597 per share but not subscribing to the rights issue (three times the holding at Rs 45/- per share). Without subscribing to the rights issue ( various reasons such unable to raise additional capital etc), the existing share holder wants to sell after the record date ,he/she will get Rs 187/- per share after the ex rights, there by losing Rs 410/- per share. As such , either the share holder must subscribe to the rights issue or he/she should sell before the record date.
