Here's how Reliance Industries right issue may affect the share price

A rights issue is an invitation to existing shareholders to buy more shares at a discount to the market price. The company owned by Asia's richest man, Mukesh Ambani, plans to mop up ₹53,125 crore from shareholders. A rights issue is an invitation to existing shareholders to buy more shares at a discount to the market price. While it is difficult to estimate the exact value of the total shareholding (after subscribing for rights)— since it can be affected by business and market factors — the theoretical price of each share can be calculated in the following manner. If the share price falls on Monday (May 3) and the closer it gets to ₹1,257, it will make lesser sense for investors to subscribe to the rights because the room for gains will shrink. RIL is expected to use the money received from subscriptions to the rights issue to repay debt. RIL is expected to use the money received from subscriptions to the rights issue to repay debt. In addition, they will also subscribe to all the unsubscribed shares in the Issue,” Reliance Industries said in a statement. Tech Mahindra shares are cheap despite the earnings disappointment, says a research report Billionaire Warren Buffett hasn't had a haircut or worn a tie in 7 weeks, he revealed at Berkshire Hathaway's annual meeting