3.6. Rights Issues
In a rights issue, a company offers its shareholders new shares at a set price, in proportion to what they already hold. A ratio of 1:26 means one new share for every 26 held. Shares you subscribe to arrive in your demat account without a trade on the exchange, so your tradebook never shows them.
As with buybacks, Tradestory knows when companies hold rights issues. When you held a stock on the record date, the issue appears on Load → Rights Issue Subscription, under Needs your input, with your entitlement already worked out.
In our small tradebook, the investor held 260 shares of TATACONSUM, Tata Consumer Products, on the record date of its rights issue, 26 July 2024. At 1:26, that is an entitlement of 10 shares, at an issue price of ₹818. Figure 3-4 shows the row.
Rights Issue Subscription
Needs your input
| Symbol | Broker | Ratio / Price | Record Date | Entitlement | Shares Subscribed | Issue Price (₹) | Status | |
|---|---|---|---|---|---|---|---|---|
| TATACONSUM | zerodha | 1:26 @ ₹818 | 2024-07-26 | 10 | 10 | 818 | pending |
The ratio, record date, entitlement and issue price come filled in. Yours to enter is Shares Subscribed: 10 in our example, the full entitlement. If you subscribed to fewer, enter that number; if you did not subscribe, enter 0.
Choose Save, and the row moves to Decided. TATACONSUM now shows 270 shares. The 10 new shares appear as a second tranche at ₹818, and the average cost becomes ₹1,084.31.
Where We Are Now
Every gap in the small tradebook is now filled. In Book issues:
- Residual Fix-ups is empty.
- Current Positions shows TITAN, INFY with 40 shares, TATACONSUM with 270 and ASIANPAINT with 50.
- Past Positions shows LT, COFORGE and BAJAJHFL.
- The equity curve runs from June 2023, and takes in every event we recorded.
Summary
Loading trades is mostly a matter of uploading a newer tradebook now and then, starting from the Download from date. In this chapter we also:
- kept separate sets of trades apart in portfolios,
- settled residual fix-ups, by ignoring a sale or by adding an opening balance, and let Tradestory apply a split for us,
- recorded an IPO allotment,
- and answered a buyback and a rights issue that Tradestory found on its own.
With every trade in place, we can turn to what Tradestory shows about them. In Chapter 4, we look at your positions in full.