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Dagabie
07-09-11, 05:49 PM
What are the reasons if any for the issue of Shares to existing Shareholders at a lower price (Rights issue of shares) than the Market Price before the Rights issue?

Pavan S
08-09-11, 04:59 AM
The price at which the shares are offered is usually at a discount to the current share price. This gives investors an incentive to buy the new shares.

Hope this helps.