About Further public offering FPO and Rights Issue RI
is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document.
An offer for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.
is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date.
The rights are normally offered in a particular ratio to the number of securities held prior to the issue.
This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements.