Rights Issue Entitlement Calculator

Calculate exactly how many new shares a rights issue entitles you to, what full subscription would cost, and the Theoretical Ex-Rights Price (TERP) the stock should settle at once it goes ex-rights. Pick a live rights issue to auto-fill the ratio and issue price.

Shares You're Entitled To

For every 5 shares held, you get 1 new share at ₹80.

Investment Required (Full Subscription)

₹1,600

Theoretical Ex-Rights Price (TERP)

₹96.67

Issue Price Discount to TERP

+17.2%

Total Shares After Rights

120

TERP = (shares held × cum-rights price + entitled shares × issue price) ÷ total shares after the rights issue — the price a share should theoretically trade at once it goes ex-rights, assuming no other price movement.

How the Rights Issue Entitlement Calculator works

A rights ratio like “1:5” means 1 new share offered for every 5 shares already held. Your entitlement is always rounded down to a whole number of shares — SEBI's 2025 rights-issue reforms (Circular dated 11 March 2025) shortened the overall process to roughly 23 working days from board approval, with the record date fixed within 4 working days of approval and rights entitlements (REs) credited to demat accounts within 9 working days — but the entitlement and TERP maths themselves are unaffected by the timeline change.

TERP (Theoretical Ex-Rights Price) is the price a share should theoretically settle at immediately after the rights issue, purely from the dilution effect of adding new shares at a discount — it assumes no other news or market movement, so the actual post-rights price will usually differ.

Disclaimer: This calculator is for educational purposes only and does not constitute investment advice. Always read the Red Herring Prospectus and verify current rates before applying for any IPO.

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Frequently Asked Questions

What does a rights ratio like '1:5' mean?

It means you're entitled to 1 new share for every 5 shares you already hold as on the record date. Entitlements are always rounded down to a whole number.

What is TERP and why does it matter?

TERP (Theoretical Ex-Rights Price) is the price a stock should theoretically trade at right after going ex-rights, since new shares are issued below the prevailing market price. It's a useful reference for judging whether the rights issue price is a genuine discount.

Do I have to subscribe to my full entitlement?

No — you can subscribe fully, partially, or not at all. Rights entitlements (REs) also trade separately on the exchange, so you can sell some or all of your entitlement to other investors instead of subscribing yourself.

What happens if I don't subscribe or sell my entitlement?

Unexercised, unsold rights entitlements simply lapse — you forfeit the value of the discount, and your percentage shareholding in the company is diluted since new shares were issued to others.

How long does a rights issue take from announcement to credit?

SEBI's March 2025 reforms target roughly 23 working days from board approval to completion — a major reduction from the historical average of several hundred days — with the record date fixed within 4 working days and REs credited within 9 working days of approval.