When a company plans to offer new shares of stock to the public, sometimes they will issue a rights offering.
A rights offering gives existing shareholders an opportunity to purchase shares of the new stocks at a discounted price before those shares are offered to the rest of the public. Rights have an expiration date and are issued for a short time only.
Companies use Rights Issues to raise capital for different purposes such as - growth strategies, paying off debts and funding acquisitions and others. Investors who are not shareholders can buy such rights on the market.
If you are eligible for participating in a particular rights issue, shortly after its official announcement and the start of the subscription period, you will receive an e-mail with the details of the offer and the capital required for it. Once you have applied (given that you have enough free funds for it), you will receive the newly issued shares up to 5 business days after the official pay date.