Which of the following statements is/are correct with reference to the rights issue?

Which of the following statements is/are correct with reference to the rights issue?

A. Under Company Laws, a rights issue is one of the many ways in which a company can raise additional capital when they need it.

B. A rights issue gives investors the option, or a right to buy new shares of the company at a discount to the current market price.

C. Both A & B

D. None of these

Explanation:

The board of directors of Bharti Airtel has approved the company’s plan to raise up to Rs 21,000 crore by way of a rights issue. Under Company Laws, a rights issue is one of the many ways in which a company can raise additional capital when they need it. A rights issue gives investors the option, or a right to buy new shares of the company at a discount to the current market price.