Rights Entitlements (RE) Listing – December

Whenever a company launches a Rights Issue, it provides existing shareholders the opportunity to buy additional shares — usually at a discounted price — in proportion to their current holdings.

Eligible shareholders receive Rights Entitlements (REs) in their demat accounts. These REs are temporary securities that grant the right (but not the obligation) to subscribe to new shares or sell the entitlements to other investors in the open market.

Below is the list of Rights Entitlements (REs) launched in November 2025:

What Are Rights Entitlements (REs)?

A Rights Entitlement (RE) is a temporary instrument issued by a company to its existing shareholders when it announces a rights issue.

These REs:

• Are credited to the shareholder’s demat account.

• Represent the right (not obligation) to buy additional shares at a discounted price.

• Can be sold or transferred during the RE trading period.

• Expire automatically if not exercised or sold before the issue closes.

What Can You Do With Your Rights Entitlements?

As a shareholder, you have three choices regarding your Rights Entitlements:

1. Apply for Rights Shares:
   Use your REs to subscribe to new shares at the discounted price offered by the company.

2. Sell Your REs on the Exchange:
   If you don’t wish to invest more, you can sell your REs in the open market during the trading window.

3. Do Nothing:
   If you neither apply nor sell your REs before the issue closes, they will expire worthless after the closing date.

Example:

Suppose you hold 100 shares of ABC Company, which announces a rights issue in November 2025 with the following details:

• Issue ratio: 1 new share for every 10 existing shares

• Issue price: ₹100 per share

• Market price: ₹150 per share

You’ll receive 10 Rights Entitlements (REs) in your demat account, one for each additional share you’re eligible to buy.

Now you can:

• Apply for 10 additional shares at ₹100 each, or

• Sell your 10 REs on the exchange to another investor, or

• Let them lapse, losing the opportunity if you take no action.

Conclusion

Rights Entitlements provide a fair and flexible way for existing shareholders to participate in a company’s growth or monetize their rights in the market. However, since REs are temporary, investors should act promptly within the trading window to make the most of their options.