I don/t know whether its good or bad to go for rights issue, but in my experience it failed, I will give you my story, I purchased reiagro which is group A share 100 @ 44, they announced rights issue and price came down to 31, official announcement is 2 shares for each 1 share held, so I am eligible for 200 shares, I applied for 1000 additional shares hoping that benifit if I got at low price, I got 1200 shares, so my average came to 21.33, after crediting shares in demat account immediately price fell down to 25 and if went upto 18.75, still it is under recovery phase, not able to cross 22, so my advice is not to take rights issue and sell all those shares what you have.
Hello boarders, i am existing shareholder of State bank of mysore.. i plan to subscribe for rights issue for 2lacs..(issue pprice 540, cmp 920) is it worth applying..as i have never subscribed for any rights before
One Silly question - I will apply based on the answer - If I apply at 405 and and cut-off is decided at 425 and Retail is not subscribed fully, now will I get at 405 or 425?