Explanation about right issues of RELIANCE

Assume an Investor buy 15 shares of RIL @1464 to take advantage of right issue @1257

Right issue ratio is 15:1 means you can buy 1 shares if you you hold 15 shares in your portfolio

So before right issue your investment is 15x1464=  21960

You can buy buy 1 more @1257

Now your total investment is 

21960+1257 = 23217 

For total (15+1) 16 shares

So after buying right issue your average price of RIL is now

23217/16 = 1451

Means a benefit of roughly 13 rupees per shares

So we can avoid it

#samparkonline