What happens to the existing shareholding percentage if a shareholder does not participate in a Rights Issue?
What happens to the existing shareholding percentage if a shareholder does not participate in a Rights Issue? |
If additional shares are issued and an existing shareholder does not subscribe, the shareholder’s percentage ownership may decrease because the company’s total share capital increases. The extent of dilution depends on the number of shares issued and the existing shareholding. Additional Resource: To know more about the rights issue, click on the below link. Understand Shareholding Dilution Learn how non-participation in a Rights Issue may impact your ownership percentage in a company. Have a question? Email Us: customer.care@jainam.in | Call Us: (0261) 6725555. |