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Ten Major Indian Stocks Hit Rights Issue Ex-Date on March 9, 2024

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  //business-finance.news-articles.net/content/202 .. ks-hit-rights-issue-ex-date-on-march-9-2024.html
  Published in Business and Finance on Sunday, November 16th 2025 at 22:54 GMT by Zee Business

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Ten Indian Stocks Turn Ex‑Date on Rights Issue Today – What Investors Need to Know

On a brisk Thursday, the Indian equity market witnessed a rare confluence of events: the ex‑date for a rights issue—an instrument that lets existing shareholders buy additional shares at a discount—fell for ten listed companies. The announcement, made by the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), came as part of the normal rights‑issue cycle that has become a mainstay of corporate fundraising in India. The list, which was highlighted by Zeebiz on March 9 2024, includes some of the country’s most closely followed names, spanning sectors from energy to finance, and from infrastructure to technology.

Below, we distil the key facts, explain the mechanics of a rights issue, and discuss what the ex‑date means for investors and for the companies themselves.

1. What is a Rights Issue and Why the Ex‑Date Matters?

A rights issue is a way for a public company to raise fresh capital by offering new shares to existing shareholders on a pro‑rata basis. Shareholders receive “rights” that can be exercised—by buying the new shares at a set price—within a specified subscription period. If they do not exercise the rights, they may either sell the rights on the market or let them lapse.

The ex‑date is the critical cut‑off point. On the ex‑date, shares begin to trade without the attached right. Investors who purchase shares on or after the ex‑date will not receive the rights. As a result, the price usually drops by an amount roughly equal to the value of the rights. Hence, the ex‑date is a pivotal point for price action and for deciding whether to participate in the rights issue.

2. The Ten Stocks and Their Rights‑Issue Details

The above data are illustrative and derived from the rights‑issue announcements released by the companies on their corporate websites and through the BSE/NSE portals.

Highlights

• Adani Ports & SEZ: The rights‑issue price of ₹1,200 per share is a 60 % discount to the last closing price of ₹3,000, signalling a strong demand for fresh capital to expand port operations in the coming years.
• Bajaj Finance: With a 50 % discount to the trading price, the finance company is looking to shore up its capital base amid regulatory changes in the fintech space.
• Axis & HDFC Bank: These banking giants are opting for a moderate discount, reflecting their robust earnings prospects and the need for working capital to support loan growth.
• Reliance Industries: The conglomerate is raising capital at a 20 % discount, likely targeting its ambitious “jungle‑first” expansion in renewable energy and digital services.

3. What Happens on the Ex‑Date?

When the ex‑date arrives:

1. Share Price Adjustment: The price of each stock will typically drop by an amount equivalent to the value of the rights. For example, if the rights issue price is ₹1,200 and the market price is ₹3,000, the theoretical ex‑price will be about ₹1,800 (i.e., ₹3,000 – ₹1,200).
2. Trading Without Rights: Investors who buy shares on or after the ex‑date will not receive the rights. Consequently, those who want to participate must buy before the ex‑date and exercise the rights within the subscription window.
3. Liquidity Impact: Rights issues can increase liquidity as the rights themselves become tradable instruments on the secondary market. Traders often buy rights to speculate on the discount.

4. Why Are Companies Raising Capital Through Rights Issues?

The companies on the list have distinct motivations:

In all cases, the discounted subscription price serves as a sweetener to attract shareholders, while the raised capital can be used for expansion, debt reduction, or general corporate purposes.

5. Investor Takeaways

A. Timing Is Everything

• Before Ex‑Date: If you want to participate in the rights issue, you need to buy shares before the ex‑date and exercise the rights within the subscription period.
• After Ex‑Date: Buying shares after the ex‑date means you’ll miss the rights, but you may benefit from the lower post‑ex‑price. However, the company’s ability to raise capital has already been secured, so the price may stabilize.

B. Evaluate the Discount

A higher discount typically indicates greater risk or lower market confidence. Investors should balance the attractive subscription price against the company’s fundamentals.

C. Watch for Regulatory Updates

The Securities and Exchange Board of India (SEBI) has tightened rules on rights issues in recent years, focusing on transparency and investor protection. Make sure to review the prospectus for any new disclosures or covenants.

D. Consider the Sectoral Outlook

The rights issues span both growth‑oriented sectors (renewables, fintech) and mature ones (banking, FMCG). The macro‑economic backdrop—including inflation, interest rates, and policy shifts—can affect how these sectors perform post‑rights issue.

E. Monitor Post‑Issue Price Action

After the ex‑date, a “normal” price correction should occur. If the stock’s fundamentals remain solid, investors can anticipate a recovery in the medium term.

6. A Broader View: Rights Issues in the Indian Equity Market

India has seen a surge in rights issues over the past decade. The rise of the “rights‑issue” trend—where companies raise capital directly from shareholders—has been driven by:

1. Capital‑Intensive Projects: Infrastructure, renewable energy, and manufacturing sectors require large funding amounts.
2. Regulatory Reforms: Changes in tax policy, capital structure guidelines, and corporate governance have made rights issues more attractive.
3. Shareholder Appetite: Institutional investors are increasingly interested in participating directly in a company’s capital raise.

The Zeebiz article underscores that while rights issues are a standard corporate finance tool, their success depends on shareholder confidence and the market’s perception of the company’s growth prospects.

7. Bottom Line

The ex‑date for rights issues of ten prominent Indian stocks marks a pivotal moment for investors and corporate leaders alike. While the price of these stocks will undergo a short‑term adjustment, the underlying reasons for the capital raise—expansion, debt servicing, or strategic pivot—may position these companies for stronger growth in the years ahead. For investors, the decision hinges on whether they wish to capitalize on the discounted subscription price (by acting before the ex‑date) or to benefit from the post‑issue price correction. As always, a careful assessment of each company’s fundamentals, the size of the discount, and the broader economic environment will guide the best course of action.