Definition

Shares offered to shareholders to maintain their proportion of ownership in the company.

Usually the Right Issue is offered below the share price in less than 6 months from the issuance of the new shares.

One thing that must be noted from a Rights Issue is that the price will increase if the issuer plans to expand its business, new projects or increase working capital. But if it's only to pay off debt, you need to be aware that the price could drop.