Rights Entitlements (REs) – March 2026

Whenever a company announces a rights issue, it offers its existing shareholders the opportunity to purchase additional shares - usually at a price lower than the prevailing market price - in proportion to their current holdings.

If you are eligible on the record date, Rights Entitlements (REs) are credited directly to your demat account. These REs are temporary securities that give you the right to apply for additional shares, but not the obligation. You can also choose to sell them on the stock exchange during the trading window.

Below is the list of Rights Entitlements (REs) launched in March 2026:

What are Rights Entitlements (REs)?

A Rights Entitlement (RE) is a short-term instrument issued to existing shareholders when a company launches a rights issue.

Here’s what this means for you:

• REs are credited directly to your demat account.

• They represent your eligibility to subscribe to additional shares at the rights issue price.

• REs can be traded on the stock exchange during a limited trading window.

• If they are not used or sold before the deadline, they automatically expire.

In simple terms, REs provide flexibility - you can participate in the rights issue, sell the entitlement, or simply let it expire.

What can you do with your REs?

If REs are credited to your account, you have three possible options:

1. Apply for the rights shares

You can use your REs to subscribe to additional shares at the issue price announced by the company.

2. Sell the REs on the exchange

If you do not wish to invest further, you can sell your REs in the market during the trading period.

3. Take no action

If you neither apply for the shares nor sell the REs within the specified timeline, the REs will expire and become worthless after the closing date.

Quick Example

Suppose a company announces the following rights issue:

• Issue ratio: 1 share for every 5 shares held

• Issue price: ₹64 per share

• Current market price: ₹118 per share

If you hold 50 shares, you may receive 10 REs (based on eligibility).

You can then choose to:

• Apply for 10 shares at ₹64 each,

• Sell the 10 REs in the market, or

• Let them lapse if no action is taken before the deadline.

Final Takeaway

Rights Entitlements are designed to give existing shareholders a fair opportunity to maintain or increase their ownership in a company at a preferential price. They also offer flexibility - if you choose not to participate in the rights issue, you can still monetize the entitlement by selling it in the market during the trading window.