How to Apply for Rights Issue Online in India (Step-by-Step Guide)

How to Apply for Rights Issue Online

If you are a shareholder and a company announces a rights issue, it’s an excellent opportunity to increase your holdings at a discounted price. Gone are the days when you had to fill out forms and submit them physically. Today, applying for a rights issue online is fast, easy, and can be done in just a few clicks. In this guide, we’ll explain everything you need to know about how to apply for a rights issue online in India using ASBA and RTA platforms like Link Intime and KFinTech.

🔍 What is a Rights Issue?

A rights issue is when a listed company offers additional shares to its existing shareholders at a discounted price, usually in proportion to the number of shares they already own. For example, if a company announces a 1:4 rights issue, you can buy 1 additional share for every 4 shares you already hold.

📌 Key Requirements Before Applying

Before applying for a rights issue online, make sure:

• Your email ID and mobile number are updated with your Demat account.
• You have a net banking account that supports ASBA (Application Supported by Blocked Amount).
• You are holding shares of the company on the record date.
• You know your DP ID/Client ID and PAN number.

🛠️ Step-by-Step Guide to Apply for Rights Issue Online

You can apply for the rights issue in two main ways:

1. Through Net Banking via ASBA
2. Through RTA Website (Link Intime or KFinTech)

Let’s explore both options.

✅ Method 1: Apply via Net Banking (ASBA)

Most banks in India support ASBA applications through their net banking portals.

Steps:

1. Login to your net banking account (SBI, HDFC, ICICI, Kotak, etc.).
2. Go to the IPO / ASBA section.
3. Click on “Apply IPO/Rights Issue”.
4. Select the issuing company from the list.
5. Fill in the following details:
   • PAN Number
   • Depository (NSDL/CDSL)
   • DP ID and Client ID
   • Number of rights shares you wish to apply for
   • Price per share (usually pre-filled)
6. Confirm and submit the application.
7. Funds will be blocked from your account till allotment.

You will receive an SMS/email confirmation once the application is successful.

✅ Method 2: Apply via RTA Website (Link Intime or KFinTech)

If your bank does not support ASBA for rights issues or you prefer using the RTA method, this is a reliable alternative.

Step-by-Step (Example using Link Intime):

1. Visit the RTA website — for Link Intime:
   https://rights.linkintime.co.in
2. Choose “Apply for Rights Issue” from the menu.
3. Enter your:
   • PAN number
   • DP ID/Client ID
   • Category (Resident/NRI)
   • Email ID and mobile number
4. OTP will be sent for verification.
5. The system will auto-fetch your entitlement.
6. Enter the number of shares you want to apply for:
   • Fully paid-up shares
   • Additional shares (if you wish to apply more than entitlement)
7. Choose Payment Method:
   • UPI
   • Net Banking
   • RTGS/NEFT
8. Complete the payment and submit the application.

You will receive confirmation via email and SMS.

📩 How to Track Rights Issue Entitlements (RE)

When a rights issue is announced, the company also credits Rights Entitlements (REs) to your Demat account. These are temporary securities and usually trade on the stock exchange for a few days.

To check your REs:

• Login to your Demat account (Zerodha, Groww, Upstox, etc.)
• Go to Holdings
• Look for the RE symbol (e.g., ABC-RE)

You must apply using these REs before the last date. If unused, REs will lapse and become worthless.

🕑 Important Deadlines to Watch

• Record Date: You must hold shares on this date to be eligible.
• RE Trading Window: Typically open for 1 week.
• Application Deadline: Must apply before the issue closes.
• Allotment Date: Shares are credited to your Demat account if allotted.

💡 Pro Tips Before You Apply

• Read the Letter of Offer (LOF) carefully for complete details.
• Apply early to avoid last-minute issues.
• Keep your UPI and net banking credentials ready.
• You can apply on behalf of a family member using their PAN and Demat details.

📈 Why Consider Applying for a Rights Issue?

• Discounted Price: Shares are usually offered below market price.
• No Brokerage Fees: Unlike secondary market buys.
• Proportional Allocation: Priority to existing shareholders.
• Long-term Wealth Creation: If the company has good fundamentals.

🧾 Final Words

Applying for a rights issue online has become seamless, secure, and accessible to all retail investors. Whether you use ASBA through your bank or apply via RTA websites like Link Intime or KFinTech, the process can be completed in just a few minutes.

Missing out on a rights issue could mean losing a golden opportunity to invest in your favorite company at a discounted price. So stay alert, check your emails and holdings, and act within the deadline!