Aditya Birla Fashion - Rights Issue

General
15

Yes. RE’s are settled Trade-to-Trade, so you can’t sell them until they are in your Demat account.

RE’s will be delivered to you on Monday EOD, you will be able to sell on Tuesday.

16

I have two questions,could you please clarify

  1. If i have purchased 100 RE shares and will i be getting 100 shares once alloted. Do i have to apply for 100 shares by paying at the rate of Rs.55 each.
  2. What happens to the RE shares i have in my demat account post July 17th. They will be automatically converted to the actual stock after allotment of shares and what happens to the amount paid for buying RE’s… Please explain the process of this RE shares getting converted and how they show up in our Demat Account
    Thanks
17

You have 100 RE’s, you have right to apply for 100 shares and you will have to pay Rs. 50 premium per share on application.

RE’s will cease to exist after July 17 and will vanish from your Demat account.

The amount you paid to purchase was premium you paid to get rights to apply for the issue. The amount you paid for RE’s goes to shareholder(s) who renounced their rights (gave away their rights by selling the RE’s).

PS: You have bought the RE’s so make sure you apply for the rights shares, if you don’t and once RE’s vanish from your Demat account there is no way to get back money you paid to buy RE’s.

1 Like
18

Excellent Response… Thanks much!!!

19

Hi,

Thanks for providing all this information. I have couple of similar queries.

  1. I have applied for ABFRL RE. What happens if delivery of RE shares happen on 18th July? If I cannot sell it, then what’s the process of applying for Abfrl shares.

  2. What if I want to opt for Abfrl rights issue after 17th July? Will I able to or not.

  3. Does RE share prices fall or rise towards the close date of 17th?

Thanks

20

Trading of RE’s stopped yesterday, if you bought yesterday RE’s will be delivered to you on Wednesday.

This has already been explained above

How to apply for the Aditya Birla Fashions rights issue?

Once you either receive the REs from the company or purchase it from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post .

You can verify your entitlement on the website of the Registrar & Transfer Agent . You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number. You can read this FAQ on the RTA’s website for details.

You won’t be able to apply after 17th. If you don’t apply for rights shares on or before 17 July you will lose the entire premium paid to buy RE, there will be no refund.

RE’s have stopped trading now, and will vanish from your Demat account once issue ends on 17th July.

21

I have 1000 ABFRL RE, suppose i pay 50 per share to apply for rights. Will I be allowed to sell my share post 23rd? My buying would be (12+50) . What would be selling terms. Can someone help

22

you have to pay 55 not 50. If you purchase @12, then your cost will be Rs. 67 plus 55 Rs.(67+55=122) if you pay both the calls.

23

The listing date is 7th August, you will be able to sell after that.

Your buying cost would be Premium of 12 + 55 on Application = Rs. 67

There are no terms, you can sell them just like any other stock. Just that once you sell Partly Paid Shares, you won’t be obliged to pay further Call amount in January 2021 and July 2021, which will be passed on to the buyer of these shares.

24

Can I do online subscription without any hardcopy documentation.

25

The whole process is online. It’s already mentioned above.

How to apply for the Aditya Birla Fashions rights issue?

Once you either receive the REs from the company or purchase it from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post .

You can verify your entitlement on the website of the Registrar & Transfer Agent . You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number. You can read this FAQ on the RTA’s website for details.

26

I bought 9000share Aditya birla RE but don’t want to buy right issue not have money now what I will do plz suggestions me

27

I bought 9000share Aditya birla RE but don’t want to buy right issue not have money now what I will do plz suggestions me

Topic Controls

28

RE trading period is open for one more day, you can sell them tomorrow, after that you won’t be able to sell and will have to apply for the issue, if you don’t apply for rights shares you will lose entire premium paid, there will be no refund.

29

Hi,
Can you please explain, I am existing shareholder of ABFRL and I received 11 RE shares. Whether it will credited to my demat automatically or not? If not, when I have to apply right shares and whether I need to pay during apply the received RE shares or not? and How much I need to pay?

30

Hi there!
Bro need an urgent help. I have unknowingly bought 1500 shares of abfrl re @28. I was unaware of many facts. What should I do now?

  1. Should I sell them?
  2. If not then is it profitable to apply for the rights issue at this rate?
  3. I have 1500 RE share then how much do I need to pay for the share?
  4. If in case I want to apply for only 1000 shares then what will happen?
1 Like
31

These shares will already be in your Demat account.

Yes, you have to use RE’s recieved to apply for rights shares. When you apply for rights shares you will have to pay Rs. 55 per share.

Process to apply has been explained above.

How to apply for the Aditya Birla Fashions rights issue?

Once you either receive the REs from the company or purchase it from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post .

32

Thanks for your reply. its already credited to my demat. So ABFRL RE is not a free share to existing shareholder right…

33

If you don’t want to apply for rights shares, you should sell them. Trading window for RE’s closes tomorrow after that you won’t be able to sell them.

Can’t really tell if it is profitable or not.

You have 1500 RE, so you will have to apply for 1500 shares. On application you will have to pay 55 per share, for 1500 shares you will have to pay 82,500.

If you apply only for 1000 shares, your remaining 500 RE’s will expire worthless as RE’s will cease to exist once issue closes on 22nd July, and you will lose all the premium you paid to acquire them as there will be no refund.

34

Shareholders recieved 9 RE’s for every 77 shares they held, those were free. however you will have to pay when you apply for rights shares, they are not free.

If you don’t want to apply for rights shares, you can sell the RE’s and earn the premium, trading window for RE’s closes tomorrow after that you won’t be able to sell.