Everything you need to know about Cressanda Solutions Limited rights issue

Cressanda Solutions Limited (CRESSAN) has announced a rights issue of 2,46,49,206 equity shares aggregating up to Rs. 49.29 crores. The rights issue opens for subscription on June 27, 2023 and closes on July 11, 2023.

Anyone who holds shares of Cressandra Solutions Limited as of June 16, 2023 (record date) will be eligible for receiving Rights Entitlements (REs). These REs will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the REs to apply for the rights shares of the company or you can sell them in the market.

You can check the announcement from the company here.

You will be eligible for receiving Rights Entitlements (REs) if you’ve bought the shares on or before June 15, 2023. The ex-date is June 16, 2023.

Rights issue details

Issue Period June 27, 2023 - July 11, 2023
RE Trading Period June 27, 2023 - July 05, 2023
Issue Price Rs. 20 per share (Rs. 10 on application)
Ratio 6:97
Ex-date June 16, 2023
Record Date June 16, 2023
Tentative Date of Allotment for rights shares July 17, 2023
Tentative Date of Credit of rights shares July 19, 2023
Tentative Date of Listing for rights shares July 24, 2023

This is a partly-paid issue, meaning you only have to make part payment at the time of application.

Amount payable per equity share Face Value Premium Total
On Application 0.5 9.5 10
One or more additional calls as may be decided by the company 0.5 9.5 10
Total 1 19 20

If you continue holding partly-paid shares of Cressanda Solutions Limited when the company makes a call for the balance payment, you will be liable to pay the balance sum. If you have sold the partly-paid shares, the buyer will be liable to pay the sum.

How to apply for Cressanda Solutions Rights Issue?

Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using the below methods;

You can check the application process here.

You will need to enter your Demat account’s Beneficiary Owner ID which is a 16-digit number while applying for the rights issue.

The option to apply for rights shares through the RTAs portal is not available for this rights issue.

What will happen to my purchased holding of RE shares if I do not apply for the rights issue?
Your REs will lapse and you will lose the premium paid to acquire them. The RE will be in the form of temporary demat securities which will lapse if not renounced/exercised once the trading window is closed.

I don’t have the shares but bought REs, am I still eligible to apply for the rights issue?
In case you have bought REs but don’t have shares, you’re still eligible for the rights issue. You may apply for the rights shares either through the RTA’s portal or via net banking ASBA if your bank allows it. If you don’t take any action, and let the REs remain in your Zerodha account, they will lapse after the issue.

You can read more FAQ’s on Rights Issue and Rights Entitlements here.

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