If you buy RE’s from market, you need to apply as Renouncee.
If we don’t apply for right issue for RE shares, what will happen???
If we do apply for right issue for RE shares, what would be the status of earlier RE shares value???
Pls clarify…
The RE’s will expire worthless, and if you have bought RE’s from market you will lose all the money you have paid to purchase the RE’s.
RE’s are temporary, so they are removed from your account. When you apply for rights shares, you will receive Spencers Retail’s shares equal to the number of RE’s you have.
Hello sir,
I had bought spencer RE 50 shares 20 rupee each worth of 1000 Rs. Then what will i have to fill following tabs;
- No of shares Entitled
- No of shares applied
- Application amount
You bought RE’s from market, so you don’t have to enter anything here.
Enter number of shares you want to apply for.
This will be automatically filled when you enter the number of shares you want to apply for.
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I have 50 RE’s. and ratio is 2:15. then how it would be calculated. plz help me to calculate. bcz i want to apply for all 50 RE’s.
Means I have to fill (no of shares applied) ??
If I have 100 RE shares & price/share is 30.
Total amount- 3000.
If I apply right to share for 100 nos with the value of 75 and value would be 7500.
What will happen to the earlier purchased money of 3000…
You have 50 RE’s, just enter 50 in “No. Of Shares Applied” box. You don’t have to do anything else.
That is the premium you paid to purchase RE’s. This goes to shareholder who renounced his rights.
It means that I do not get any money whether I will apply right issue or not.
Please clarify…
For that earlier money 3000 can be converted to 40 nos Spencer retail share???
When you apply for Rights Issue, you will get shares in return. If you don’t apply, you will also lose entire money paid to purchase the RE’s.
You cannot. As I said earlier, the Rs. 3000 you paid to buy RE’s, goes to the shareholder who has renounced his rights, not the company.
It means 50 RE’s shares price @75 = 3750. and these shares will be shown at my Zerodha portfolio later. where current price of share is 86 approx. Is it so???
Or can i apply for more than 50 or less than 50?
Yes. For 50 RE’s, you will get 50 shares when you apply.
You can apply for more than 50 as well, but guaranteed allotment will be only for 50 since you have 50 RE’s, for remaining, if you aren’t alloted, that much amount will be credited back to your bank account.
Thank you for explaining everything.
one last ques.
- After applying for rights what will happen to those 1000 rs that i paid earlier?
when will I get back that amount (1000Rs)??
The money you paid to purchase RE’s goes to shareholder who renounced his rights. You don’t get that back.
I am holding 1854 re of spencer for 48k. Is it compulsory that I apply for 1854 shares through link intime, @75, so that I be eligible for the 1854 rights?.
Does this mean, I bought 1854@25+ 1854@75, so that the average buy becomes 1854@100?. Doesn’t this become a loss to me as an investor, as CMP@87?.
If you apply for less than that, the remaining RE’s will expire worthless and you will lose all the money paid to purchase them.
Ohhh…
thank you for the reply,
so i should have bought 50 re, and then Should have applied for 1854@75, so that if available, I be credited with that no. Of shares.
Now I stand to lose the initial 50k, and to save me from loss I should again spend 1.4 lakh, and Sit and pray to god that I be credited 1854 shares, and wait for the Cmp of spencer to cross 100, so that I exit without loss?
You have 1854 RE’s, you will get confirmed allotment for that many shares.