When a company launches a Rights Issue, it allows its existing shareholders the opportunity to subscribe to additional shares—typically at a discounted price—based on their current shareholding.

Eligible shareholders receive Rights Entitlements (REs) directly in their demat accounts. These are temporary, tradable instruments that grant shareholders the right (but not the obligation) to apply for new shares or sell the entitlements to other investors in the market.

Below is the updated list of Rights Entitlements (REs) launched in December 2025, including the newly added Hindustan Construction Co. Ltd. rights issue.

Rights Entitlements (REs) – December 2025

 

– Record Date: 05/12/2025

– Issue: 277 shares for every 630 shares held

– Issue Price: ₹12.50 per rights share (₹1 FV + ₹11.50 premium)

What Are Rights Entitlements (REs)?

A Rights Entitlement (RE) is a temporary security credited to the demat accounts of eligible shareholders when a company announces a rights issue.

These REs:

• Are credited automatically to shareholders based on the record date holding

• Represent the right—but not obligation—to buy new shares at a discounted price

• Can be traded on the stock exchange during the RE trading window

• Lapse automatically if not used or sold before the issue closes

What Can You Do With Your Rights Entitlements?

As a shareholder, you have three choices:

1. Apply for Rights Shares

Use your REs to subscribe to new shares at the discounted price offered.

2. Sell Your REs on the Exchange

If you do not want to invest more, you can sell your REs during the trading period.

3. Do Nothing

If you neither apply nor sell, your REs will expire worthless once the issue closes.

Example

Suppose you hold 100 shares of a company launching a rights issue in December 2025:

• Rights ratio: 1 share for every 10 held

• Issue price: ₹100

• Market price: ₹150

You’d receive 10 REs. You may:

• Apply for 10 shares at ₹100 each,

• Sell your 10 REs on the exchange,

• Or ignore them (but they will lapse).

Conclusion

Rights Entitlements empower shareholders to participate in a company’s growth or monetise their rights. Since REs are temporary and expire after a short window, investors should act promptly—either by applying or selling—to ensure they do not lose out on potential value.