Rights issues go wrong for banks
Rights seem to have gone wrong in Monday’s market conditions with plunging security prices. Not only Suzlon called off its issue in the high profile case, but India's blue-chip companies, Hindalco and Tata Motors' rights issues, too have proved to be a big burden for the banks that have under-written them. The exposure of ABN Amro Bank is $56 million, while Merrill Lynch and SBI have $70 million worth of Hindalco shares.
