What is the impact of Rights shares?

Impact of Rights Shares

1. Increased Shareholding: Shareholders get more shares, increasing their total holdings.
2. Discounted Purchase: Rights shares are offered at a discount to the current market price.
3. No Immediate Wealth Creation: While shareholders get more shares at a lower price, the overall market value of their holdings may not change significantly.
4. Potential Dilution: If a shareholder does not exercise their rights, their ownership percentage may be diluted.

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