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Increase the funds

Right issue of shares

Right issue of shares is the best way to increase the funds for your business. Offer rights to shareholders and get the funds for your business with Ebizfiling. Prices start at 12999/- only

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All about Right Issue of Shares?

All you need to know about offering shares to the shareholders

Right Issue of Shares  / Rights Offering:

  • Right issue of shares or a rights offering is a bunch of rights offered to the already existing shareholders of the company to purchase extra or additional shares.
  • Such right offerings are called subscription warrants, which shall be in proportion to the existing holdings of the share holders.
  • The price of the right issue of shares will be at a discounted rate compared to the current market price.

Know More: Rules relating to the Right Offerings

Advantages of Right Issue of Shares:

  • The main advantage of Right Issue of Shares is that it raises money for the company
  • When the Rights issued the control of the company remains with the existing shareholders only.
  • The existing shareholders do not suffer any loss due to dilution in the value of their shareholding if the fresh shares are offered to them, because the value of shares is likely to fall with fresh issue.
  • The right issue involves less expense compared to the public issue. Hence, the expenses can be saved by rights offering.
  • Time to time making the right issue improves the image of the company as the exiting shareholders remain satisfied by rights offered to them.
  • As the fresh issue is made to the existing shareholders instead of the general public, the certainty of getting shares is more.
  • Right issue shares are offered proportionately to the existing shareholders according to their existing holdings, there is no possibility of directors misusing the opportunity of issuing shares to their friends and relatives.

Why Ebizfiling as your service provider for Right Issue of share in India?

EbizFiling.com is an eminent business platform and a progressive concept, which helps with end-to-end incorporation, compliance, advisory, and management consultancy services to clients all over the world. Right Issue of share procedure is easy, seamless, cheapest and quickest with us. In India we also provide services like Indian subsidiary, Start up advisory, Secretarial compliance services, Private Limited Company registration services, Trademark registration and many more.To get your ISO certification / registration in India online you may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation.

Prices for Rights Issue of Shares / Share Offering services

Essential

₹ 12999/-

(All Inclusive)

  • Drafting of documents
  • Filing of Form PAS 3
  • Filing Form MGT 14
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Types of Right issue of shares

  • Fully paid rights issue: Where an applicant has to pay the entire issue amount at the time of the application of the issue is called a fully paid rights issue.
  • Partly paid rights issue: Where an applicant is required to pay only a partial amount at the time of the application is called a partly paid rights while the balance amount is to be paid as and when the company makes the subsequent calls.
  • Renounceable  rights issue: In this kind of rights issue, the rights issue can b transferred or sold in the open market to other investors. When a renounceable rights holder does not wish to subscribe to his rights, he can opt to transfer his rights.
  • Non-renounceable rights issue: A non-renounceable rights issue cannot be transferred or sold to anyone. When the renounceable rights issue holder is no more willing to exercise his right to buy the rights share will have the only option to give up his rights and let the rights  issue lapse.

Documents required for Rights Issue of shares

  • Details of the New Shareholder
  • Details of the total amount of paid up capital to be increased
  • Name of your Private Limited Company
  • E-copy of MOA
  • E-copy of AOA (AOA shall contain a clause for Right issue of shares along with a right to renounce)
  • Photographs of Shareholder
  • DSC of existing directors
  • Self attested PAN Card of all directors
  • Self attested ID Proof of all directors (Driving License/Passport/Voter ID)
  • Self Attested Address Proof of all directors (Electricity Bill / Latest Bank Statement/Mobile Bill-not older than 2 months)
  • Percentage of Share holding

Procedure for Right issue of Equity shares

 

5 Easy Steps

1

Fill in the simple checklist

2

Verification of the documents

3

Drafting of the documents

4

Filing of Form MGT 14

5

Filing of Form PAS 3

Fill in the simple checklist

Our Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up the checklist and submit along with the documents for the processing. All throughout the process, a dedicated Compliance Manager will keep you updated on the progress of Rights issue of shares.

Drafting of the Documents

Once we have all the information and details provided by you, our experts will verify the same and will proceed with drafting the necessary documents like Resolution passed at the board meeting, Share application forms to be given to the shareholders, notice of offer, list of allottees etc. and send it to you for verification purpose.

Filing of Forms with ROC

Once we have completed the above procedure we will prepare form MGT 14 for filing the board resolution with the Registrar of the companies and Form PAS 3 with all the necessary attachments with the ROC. After completion of all the procedure, you need to issue share certificates to all the allottee share holders in Form SH 1 as per the decided proportion.

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FAQs on Right Issue of Shares

Answers to all your queries

  • What is Right Issue of Shares?

    Right Issue means to offer shares to the existing shareholders of the company in proportion to their existing share holding in the company for the purpose of raising fresh capital for the company.

  • What is renunciation of issue?

    When the right to subscription of shares in a company is assigned to a third party, such transfer is called the renunciation of issue.

  • What happens if shares are not fully subscribed?

    The Private Limited Company has the authority to dispose the shares that remained unsubscribed to any person at the discretion of the Board.

  • What is the penalty for non-compliance with the provisions of Right Issue?

    Non-compliance with the provisions regarding the right issue, the company and associated officers shall be punishable with fine up to RS. 10,000/- and further fine of Rs. 1000/- for every day after the first during the time contravention continues.

  • Which cities do you provide your services in?

    Ebizfiling.com provides “Right Issue of shares” services online across India. You can get your registered office shifted in Ahmedabad, Mumbai, Pune, Bangalore, Chennai, Delhi, Kolkata, Kanpur, Nagpur, Jaipur, or any city in India by us.

  • Have some questions?

    Our expert will help you in choosing the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@ebizfiling.com or call us @+91 9643 203 209.

Right Issue of shares / Right Offerings

Right issue of shares is the best way to increase the funds for your business. Offer rights to shareholders and get the funds for your business with Ebizfiling. Prices start at 12999/- only

Easy EMI'sTransparent Pricing

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