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Rights Issue of Shares

Raise capital from your existing shareholders in proportion to their holdings, the simplest way to bring in more funds. We handle the full rights issue.

Overview

A rights issue offers new shares to existing shareholders in proportion to their current holding — letting a company raise additional capital without diluting existing owners disproportionately or bringing in outsiders. It’s a common, straightforward funding route for growing companies.

Govyapar prepares the letter of offer, manages the board approval and acceptance process, and files the return of allotment (PAS-3) so your rights issue is completed cleanly.

What’s included

  • ✓Rights-issue structuring
  • ✓Letter of offer preparation
  • ✓Board resolution support
  • ✓Acceptance & renunciation handling
  • ✓Share allotment & PAS-3 filing
  • ✓Register & cap-table updates

Who needs this

  • Companies raising capital from existing owners
  • Founders adding funds proportionally
  • Businesses avoiding external dilution

Documents required

  • CIN & MOA/AOA
  • Cap table & shareholder details
  • Proposed issue price & amount
  • Authorised-capital position
How it works

Simple, done-for-you process

PAS-3 is drafted, filed and tracked for you by a Chartered Accountant.

1

Structure

We set the ratio, price & timeline.

2

Offer

Letter of offer sent to shareholders.

3

Accept & allot

Acceptances collected; shares allotted.

4

File

PAS-3 filed; registers updated.

FAQs

Common questions

Existing shareholders, in proportion to their current holding. They can accept, decline, or renounce their rights to someone else.

A rights issue offered to all existing shareholders pro-rata generally has more flexibility on price than a preferential allotment. We advise on your case.

Often yes, since it’s offered to existing shareholders, it avoids external negotiation and heavy valuation requirements.

They can renounce them or let them lapse; unsubscribed shares can be handled per the offer terms. We manage this.

Related

Related services

Run a compliant rights issue.

Raise capital from your shareholders — handled by us.

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