Right Issues
Right Issue
A Right Issue allows a company to raise capital by offering new shares to existing shareholders in proportion to their current holdings. It’s one of the simplest and fastest ways for a company—especially a private limited company—to bring in fresh funds without changing control. Even though the process is straightforward, it still needs proper notices, valuation (in some cases), board/shareholder approvals, and MCA filings.
We manage the entire Right Issue process so your company raises capital smoothly and compliantly.
What we do
Review shareholding structure and determine offer ratio
Draft board and shareholder resolutions
Prepare the Letter of Offer and related documents
Coordinate price calculation and valuation (if required)
Manage acceptance, renunciation, and payment tracking
File PAS-3 with MCA for allotment
Update registers and records
Why this matters
Even small errors in right issues—like incorrect offer periods, pricing issues, or missed filings—can make the allotment invalid. Clean execution keeps your cap table accurate and avoids problems during audits, due diligence, or investor checks.
Frequently Asked Questions
A method of raising capital where the company offers new shares to its existing shareholders in proportion to their shareholding.
No. They can accept, reject, or renounce their rights in favor of another person (subject to the company’s Articles).
Not always. Private companies may issue shares at any price unless Articles or investors require valuation. However, valuation is recommended to avoid tax issues.
Board approval to open the issue, and shareholder approval if Articles require it.
PAS-3 after allotment of shares.