Podcast
Questions and Answers
What is the purpose of Premier Limited issuing right shares?
What is the purpose of Premier Limited issuing right shares?
To offer the existing shareholders the opportunity to purchase additional shares at a premium.
What is the value of the right in this scenario?
What is the value of the right in this scenario?
Rs. 10 per share.
What will be the effect of this right issue on the company’s equity?
What will be the effect of this right issue on the company’s equity?
The equity will increase as new shares are issued and bought at a premium by existing shareholders.
