Rights Issue of Shares
Section 62(1)(a) rights issue to existing shareholders
- 1TermsRatio, price and record date fixed by the board.
- 2OfferLetter of offer sent; acceptances and renunciations collected.
- 3AllotmentShares allotted; PAS-3 filed; certificates issued.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Rights Issue of Shares
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
A rights issue offers new shares to existing equity shareholders in proportion to their holdings under Section 62(1)(a). The letter of offer must keep the offer open for at least 15 and at most 30 days, shareholders may renounce their rights in favour of others unless the articles prohibit it, and the allotment is reported in PAS-3 within 30 days. Private companies can shorten the timelines if 90% of members agree.
Rights issues are the simplest way to raise money from existing shareholders without changing proportionate ownership. No valuation by a registered valuer is required under the Companies Act for a pure rights issue, though issuing at a price far below fair value can have income-tax consequences for shareholders who take up more than their share.
If a non-resident shareholder subscribes, FEMA pricing and FC-GPR reporting apply as for any allotment.
Unsubscribed shares can be disposed of by the board in a manner not disadvantageous to shareholders, as provided in the letter of offer.
| Law | Section 62(1)(a), Companies Act 2013 |
|---|---|
| Offer period | 15–30 days (shorter for private companies with 90% member consent) |
| Renunciation | Allowed unless the articles say otherwise |
| Return of allotment | PAS-3 within 30 days |
Who this is for
Common scenarios where this service is a good fit.
- Companies raising money from existing shareholders
- Promoters increasing capital without diluting others' proportion
- Companies converting shareholder loans into equity
What you get
Clear deliverables so you know exactly what's included.
- Board resolution and letter of offer
- Renunciation forms and acceptance tracking
- Allotment, PAS-3 and certificates
- Authorised capital check and SH-7 if needed
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Ratio, price and record date fixed by the board.
Letter of offer sent; acceptances and renunciations collected.
Shares allotted; PAS-3 filed; certificates issued.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
