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Cos bet on rights issues despite mkt slowdown fecha Zachariah|7mx By *crvtion levels as compared | toan IPO. For a public offer ‘Mumbai: Poor investor re- f] to be successful, it has tore- sponse notwithstanding, 2 ceive a minimum subscrip- host of companies are lining ton of 90%. ‘uprights issues. From Janu “This helps promoters ary till date, 21 compantes \whochip intheextraamount i and accordingly Increase their holding in companies. Pius, itis exempt from Sabi's takeover guidelines,” says Mehl Savia of RippleWave Equity A promoter ean ratse | Teft it to promoters to bail oq 5% in 2 year. Also as com- ‘them out, nother Tata com- pared to preferential allot ‘pany Tayo Rolls will shortly ‘ment, there is no specified hit the market with its rights pricing formula for a rights ‘issue. Sowhat makes compa: J Issue, which works tn favour nies Increasingly opt for E of promoters, Savia added. Sparel theprevousyear_ sues from January i ate {ceeraph. With the piobal_in thls yess, which fs mar AVaancial crisis making n-ginally more than the (ota) {rstorsincesinglcatius tmount of 9806 millon Taras these equity prod. ralsed through iPO, FPO and inion is qoping hen. noitecmatobea Tesi: Oltrsampnielaiog simism fe aripping the n._novtarcma to boarigns compass | Nestor sentiment, companies’ sie. A rights issue is offered rights issues are Jaiprakash at new investors via various Coke Gujarat NRE Coke, sni- Instruments like initial pub. flar to Tata Motors, is con- coffers, private placement In a rights offer, a large sideringrights ssue with aif ‘and soon) ection of the issue is sup- ferential voting rights, | : Drrtedorunderwritten by the Differential voting rights ‘equity fund raising options