Everything you need to know about Genpharmasec Limited rights issue

Trading Announcements
1

Genpharmasec Limited (GENPHARMA) has announced a rights issue of equity shares aggregating up to Rs. 48.45 crores. The rights issue opens for subscription on January 22, 2024 and closes on February 9, 2024.

Anyone who holds shares of Genpharmasec Limited. as of January 09, 2024 (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 January 08, 2024. The ex-date is January 09, 2024.

Rights issue details

Issue Period January 23, 2024 - February 9, 2024
RE Trading Period January 23, 2024 - February 2, 2024
RE Symbol GENPHAR-RE
Issue Price Rs. 1.75 per share
Ratio 1:1
EX-date January 09, 2024
Record Date January 09, 2024
Tentative Date of Allotment for rights shares February 16, 2024
Tentative Date of Credit of rights shares February 21, 2024
Tentative Date of Listing for rights shares February 26, 2024

How to apply for Genpharmasec Limited 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 FAQs on Rights Issue and Rights Entitlements here.

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2

I was already holder of Genpharma shares since 3 months. I have mail and multiple alerts/notification of re issue. Still re issue shares not credited in zerodha till date

3

The issue opens for subscription on 22nd January, the RE shares are usually credited a day or two before the issue opening date.

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4

I have genpharma shares. I need to purchase genpharma re from open market and then apply for rights issue ? Or do I need to apply directly to the company ?

Please help

5

If your purchase date is on or before 08.01.2024 you must have got RE automatically in your demat account. these RE can be EITHER sold in market till 02 February (present traded price is 1.57 per RE ) OR can be applied for shares till 09.02.
ASBA through your bank be it online or physical is the only option to apply rights .

6

Thanks for your help. I just checked that I have received the re shares.

Will they be merged with normal shares after 9th feb or they will get diluted?

What are my options right now ?

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Hey @Lakshy_Kapoor

If you have received the Rights Entitlement (RE), you have two options: you can either apply for the Right Issues or sell the RE shares in the secondary market, similar to selling any other scrip.

If the REs are neither sold nor used for the rights issue, they will eventually expire and lose their value.

If you apply for Rights Entitlements (REs) and receive an allotment, the allotted REs will be converted into regular shares and merged with your existing shares. If the REs are neither sold nor used for the rights issue, they will eventually expire/get diluted and lose their value.

8

Hey karthik

Thanks for the help.

Can I purchase it from open market also ?

9

Yes, Lakshay. You can purchase REs from the markets too. Once purchased, you will have to apply for rights shares. If you don’t apply, you will lose all the amount paid to purchase the REs.

10

So, for example, if the RE trade at 1.5 and the shares trade at 5, do we have to pay 1.5 when buying from secondary market and then 5 Rs when applying for the rights shares?

11

1.50 for RE purchase from market and offer price of rights (not traded price ) which is 1.75 in this case …,

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12

Hello Guys, I had bought 5000 shares in rights issue from open market but now I cant see them in my holdings.

I am confused that what happened to them. Will I be alloted with some shares from the company side or I have just wasted my money?

13

If you have applied for the right issues and completed the payment you will receive the partly paid-up shares as per the dates mentioned above.

If you have not made the payment through the online (ASBA) or offline method by February 9th, you will lose all the capital invested in the purchase of the rights shares from the secondary market.

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.

14

Hi,
I have applied for Genpharma RE and amount has been debited from account but I haven’t received my share’s yet.

can I know how to proceed further?

15

The dates for allotment, credit and listing of shares are tentative and sometimes there can be a delay. The shares should be credited in coming days.

16

Thank you. Hopefull, I ll receive soon.

17

Can Any one confirm the new listing date of Genpharma?