Hellow guys, Welcome to my website, and you are watching Rights Issue of Shares Explained | Loophole in Rights Issue every Investor should be Aware of. and this vIdeo is uploaded by Shankar Nath at 2023-01-11T02:48:21-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Rights Issue of Shares Explained | Loophole in Rights Issue every Investor should be Aware of |
| Video Uploader | Video From Shankar Nath |
| Upload Date | This Video Uploaded At 11-01-2023 10:48:21 |
| Video Discription | ► Need Term or Health Insurance? Schedule a free 30-minute consultation : https://ditto.sh/0bxlo5 ► 26,000+ readers have joined my Investing Newsletter Subscribe Now : http://shankarnath.com A Rights Issue is used by companies to raise additional capital from existing shareholders. A rather noble purpose, until some promoters figured out how the same rights issue can help them acquire additional shares in the company at a very low cost of acquisition i.e. a share discount of 99.7%. Worse, this discount on shares is missed out by the unsuspecting public shareholders In this video, I look at this practice of offering additional shares to existing shareholders at a deeply discounted price and how it ends up hurting the public/retail shareholders in the process. As a live example, I shall be looking at the curious case of Sandur Manganese & Iron Ore Limited and why they offered a rights issue at a mere 10 rupees when the market price per share was 4,500 rupees (needless to say, the promoters were ₹23 crores richer in the process) 👉 Video Chapters: 00:00 How Rights Shares are different from Bonus Shares/Split? 01:26 Structure of Rights Issue 02:37 Increase in Promoter's Shareholding 04:43 Curious Case of Sandur Manganese & Iron Ores Limited 05:58 Sandur Manganese Rights Issue in Numbers 09:25 Certainly a Loophole SEBI needs to Plug 10:08 Options for Retail Shareholders 12:13 Shankar's Viewpoint 🙋♂ Follow Shankar Nath on https://bio.link/shankarnath 👉 Some Useful Resources & Readings: ‣ Beat The Street Twitter thread: https://twitter.com/BeatTheStreet10/status/1578743069775908867 ‣ Article on Deeply Discounted Rights Issues: https://economictimes.indiatimes.com/markets/stocks/news/rights-issues-at-deep-discount-could-be-a-good-bet-for-investors/articleshow/95926007.cms ‣ Anil Singhvi's Interview with Mr. Bahirji Ghorpade (MD of Sandur Manganese): https://twitter.com/i/status/1513445631540441094 ‣ How to apply for a Rights Issue? https://www.chittorgarh.com/faq_pg/how-do-i-apply-for-the-rights-issue/2527/ ‣ FAQs on Rights Issue & Rights Entitlements: https://support.zerodha.com/category/trading-and-markets/corporate-actions/rights-issue/articles/rightsentitlement #rightsissue #stockmarketscam #rightissue Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented |
| Category | Education |
| Tags | shankar nath | beginners buck | shankarnath | sankarnath | rights issue | right issue | sandur manganese | promoters | rights entitlements |
