Rights Issue Renouncer

A renouncer is a person who gives up his rights and is wanting to transfer his rights entitlements to another person for a price. The seller of the rights in a renunciation process is known as the renouncer.

The rights issue is an offer to buy additional shares to the existing shareholders. If the shareholders do not wish to accept the offer, they can renounce their rights to another person in part of full. Thus, the eligible shareholders in such a scenario become the renouncer.

Once a person decides to renounce his rights, he is no more eligible to apply for additional shares of the rights issue at a later stage.

Answered on 2020-08-30