Rights Issue Calculator

Inputs

Holding (N) Subscription Price (S) Share Price — Cum (P)

Entitlement (a·N)	—
Cash to Subscribe (a·N·S)	—
TERP	—
Right (cum)	—
Right (ex parity)	—
Ex‑Price used for tail‑swallow	—
Sell Shares for Cashless Take‑Up	—
Sell Rights for Cashless Take‑Up (parity)	—
Final Shares (sell shares then subscribe)	—
Final Shares (sell rights then subscribe)	—

Theoretical only; excludes taxes and broker rounding rules.

Fair R_ex from share (parity)	—
Fair P_ex from rights (parity)	—
Mispricing (P_ex − [S + (den/num)·R_ex])	—
Est. fees & borrow	—
Net spread per share	—

Positive spread ⇒ shares rich vs rights: buy rights + subscribe, hedge by shorting/reducing shares.
Negative spread ⇒ rights rich vs shares: prefer buying shares; shorting rights may be restricted.

How to use this calculator

1. Set the terms: enter your Holding (N), Subscription Price (S) and the Ratio (new/old). Defaults are pre‑filled for ETL.
2. Choose price mode: Cum (P) for pre‑ex; Ex (P_ex) for after rights detach. Then enter the relevant share price.
3. Optional live price: in the right panel, use Symbol Search (via Alpha Vantage) to fetch a quote and apply it to P or P_ex.
4. Rights price (ex‑only): if you have a market quote for the rights line, enter it as R_ex to evaluate parity/arb and tail‑swallow sizing.
5. Costs & borrow: add round‑trip fees/slippage (bps) and any borrow rate/days to see the net spread.
6. Read the outputs: see TERP, value of a right, cash to subscribe, and shares/rights to sell for a cashless take‑up. The badge will flag any possible arb vs parity.

Notes: theoretical only; excludes taxes and broker rounding. Rights lines are often short‑lived and may not appear in all data feeds.