1(Deptt. Of Commerce), Hindu College, Sonepat
2(Deptt. Of Commerce), MDU, Rohtak
3(Deptt. Of Business Administration), Hindu College, Sonepat
Online published on 11 January, 2012.
This study scrutinize the impact of right issue on earning per share and market price per share during 2009–10 of 10 public limited companies listed on Bombay Stock Exchange. Right shares are those shares which are issued to existing shareholders. According to section 81 of Indian company act 1956 “Company can issue right shares only after the two years of creation of company or one year of first issue of shares whichever is earlier." The result divulges that EPS of 2 companies out of 10 companies descent but not in that proportion in which right share has been allotted while other 8 companies demonstrate increasing trend in EPS. MPS of 7 companies out of 10 companies decayed as a result of right issue but not in that proportion in which right share has been issued.. Correlation between EPS and right issue is 0.11 and between MPS and right issue is -0.80. Thus MPS is much negatively correlated than EPS with right issue.
Right issue, EPS, MPS
