The money you have spent to purchase the RE’s goes to the shareholder who sells these to you.
Consider it as premium paid to acquire rights to apply for rights shares.
Yes, it goes to the shareholder who sold to us, but if we not apply for the rights and the shares are not alloted to us, then the purchased shares amount must be refunded back as we will be treated as not eligible shareholder for not applying for the rights
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Yes, it goes to the shareholder who sold to us, but if we not apply for the rights and the shares are not alloted to us, then the purchased shares must be refunded by applying value amount with last day 07Oct2020 trade closing share value in BSE/NSE, as we will be treated as not eligible shareholder for not applying for the rights
This is not how it works.
When you purchase the RE’s you should be fully aware that if you do not apply for rights shares, you will lose the money paid to purchase the RE’s.
You should purchase the RE only if you want to invest in rights shares.
Hi Shubh, I need help. I have bought 1000 shares of Deepak-Re-Be from Zerodha on 06 oct2020 at price ₹13.95, I was unable to sell for T+2 days, and I kept holding for the 1st day 7Oct2020, But now it’s not showing in my Holdings. What should I do? Will it be showing back in my holdings? Or what should I do, how can I get it and should sell or hold? Requesting for immediate assistance, pls reply
Hi Raj. The RE trading window has now closed, so you won’t be able to see those in your holdings anymore, though the RE’s will remain in your Demat account until Rights Issue closure date ie. Oct 12, 2020, after that they will be extinguished.
Also, you will not be able to sell them as well.
You should now apply for rights shares of Deepak Fertilizer’s with the RE’s you have before the Rights Issue closure date (October 12, 2020).
The process for applying…
How to apply for Deepak Fertilizers rights issue?
Once you either receive the RE’s from the company or purchase it from the market, you can 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 . The website will not be completely live until the issue opens.
You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying either on the RTA’s website or through Netbanking ASBA.
Why I should apply sir, I already purchased 1000 shares from my zerodha account directly, then why is not showing why I couldn’t sell
The RE (Rights Entitlement) are temporary and are extinguished once the Rights Issue is over, the RE’s give you right to apply for shares of Deepak Fertilizer’s at discount price.
then where is the money i already spent. why i need to pay again for Shares already we bought [Spent] money in RE’s know. Refund the money for 1000 shares
The money you paid to purchase RE’s goes to the shareholder who sold them to you.
That is the premium you paid to become eligible to apply for rights shares.
What is Rights shares, why I want to go for rights shares, I don’t know anything about rights shares, pls solve my problem or refund the money in my demat account
Rights Issue is way for companies to raise capital, they do so by issuing shares at discount price. Companies issue Rights Entitlements to eligible shareholders, which gives them right to apply for the shares, if they don’t want to apply then they can sell these RE’s to someone who is willing to purchase them and apply for these shares issued in Rights Issue.
As I said above, as you have purchased the RE’s, you will have to apply for the shares else you will lose all the money you have paid to purchase RE’s.
All those who are asking for refund, plz research about what you are doing and then enter. RE are rights entitlement i.e. the premium you paid to get an option to apply for rights issue.Now if you dont participate in rights issue even after buying REs then thats your problem.
And all is not gone,I think you can sell these REs before the last date of rights issue. If you can deliver me the REs before the last date through offline transaction then I am ready to buy your 1000 REs at discounted price.
Sir pls explain, what are the procedures, how to apply and how much want to spend again for this 1000 Re shares, pls reply briefly
The process has been explained here.
How to apply for Deepak Fertilizers rights issue?
Once you either receive the RE’s from the company or purchase it from the market, you can 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 . The website will not be completely live until the issue opens.
You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying either on the RTA’s website or through Netbanking ASBA.
When you apply, you will have to pay Rs. 133 per share.
Bro you need to contact your broker for offline transfer of REs to the buyer. Just now I checked and came to know that tommorow is the last date so you will have to ask your broker if he can deliver it by tommorow evening. Other option is that you can apply for the rights issue directly as you apply for IPO. Or else I am ready to buyout your REs if you can deliver it by tommorow EOD.
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pravin_patel, I have 900 shares of RE, I want to sell if you can purchase plz tell me the procedure for offline selling
See,there is no guarantee that the REs can be transferred by tommorow evening. As you must know that REs lapse on the last day of rights isuue,so your REs are going to be worthless if nobody applies against those REs.
The first and best option is that you yourself apply for those REs,if cant then ask zerodha about offline transfer,if they can deliver to me before tommorow EOD,I am ready to buy your REs at some value.
If I apply rights then how can I sell bro, tomorrow only one day… They informed very late, today only iamm seeing this type of plm
You can apply by yourself or sell them,you cant do both😅. And dont blame them that they didnt inform you,its your responsibility to check where you are putting your money. Did zerodha ask you to buy REs? If you did it on your own then you should accept that you made a mistake.