(First published in The Times of India: https://timesofindia.indiatimes.com/business/india-business/tata-capital-board-to-look-at-potential-fund-raise/articleshow/118463803.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst)
My take, as quoted in the Times of India, on the rights issue of Tata Capital in preparation of its IPO:
“A rights issue is a more beneficial option for unlisted companies to raise funds compared to preferential allotment, as it eliminates the requirement for fair value assessment. The main advantage lies in its uniform pricing structure, where all existing shareholders must subscribe to new shares at the same price.”