Everything you need to know about Indiabulls Housing Finance rights issue

Trading Announcements
1

Indiabulls Housing Finance Ltd (IBULHSGFIN) has announced a rights issue of 24,62,26,515 equity shares aggregating up to Rs. 3,693.40 crores. The rights issue opens for subscription on February 07, 2024 and closes on February 13, 2024.

Anyone who holds shares of Indiabulls Housing Finance Ltd. as of February 01, 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 to receive Rights Entitlements (REs) if you’ve bought the shares on or before January 31, 2024. The ex-date is February 01, 2024.

Rights issue details

Issue Period February 07, 2024 - February 13, 2024
RE Trading Period February 07, 2024 - February 8, 2024
RE Symbol IBUL-RE
Issue Price Rs. 150 per share (Rs. 50 on application)
Ratio 1:2
EX-date February 01, 2024
Record Date February 01, 2024
Tentative Date of Allotment for rights shares February 22, 2024
Tentative Date of Credit of rights shares February 26, 2024
Tentative Date of Listing for rights shares February 28, 2024

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

Amount payable per equity share Face Value Premium Total
On Application 0.67 48.33 50.00

The outstanding subscription money of 100 will be called within 12 months from the date of allotment in the issue or within such an extended time period. The company is yet to publish these specific details.

If you continue holding partly-paid shares of Indiabulls Housing Finance Ltd. 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 Indiabulls Housing Finance Ltd 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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Today 31.01.2024 is last date to deal CUM RIGHTS . rights issue of partly paid shares.

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I have 150 shares of indiabulls housing bought before 31st January. Today i received a message stating rights entitlement of indiabulls housing credited. How do i check this on Zerodha and how do i sell them?

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The Rights Entitlement will start showing in your holdings on Kite once they start trading on the exchanges from 7th February.

The process for selling the REs is the same as selling stocks from holdings.

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5

Thanks for the reply. Still I’m confused how could I differentiate the RE from regular shares? And RE prices are different from regular shares prices

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REs are listed separately and the symbol will be similar to this “ IBULHSGFIN-RE”.

Yes, the price of REs will be different than regular shares.

On the first trading day of the Right Entitlement, the base price would be calculated as (The closing price of the stock - Right Entitlement price).

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@ShubhS9 , CDSL has credited 50 Nos of REs of shares to the Zerodha demat account. I am not interested to apply for it. Shall I sell the same on 7th Feb., in the open market.

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Yes, if you do not wish to apply for rights issue, you can sell the REs in the market.

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@ShubhS9 . Ok. Thanks for the clarification.

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RE Listed today and will remain listed only for 2 days including today .

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I don’t see it in the list from HDFC net banking. Any other bank listed this via net banking ASBA?

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Thats a very helpful post Nitin, but I do have some very lame questions if someone is happy to answer

I owned 55 shares of Ibullhsg at 200 and now I can see 27 Ibull-Re in my account, the market value of Re is 1250 and that’s my profit as well.

Now If I buy RE, what are the advantages?
and what happens to my Ibull hsg shares
Will those remain separately?

If I sell the RE shares then 1250 is my clear profit?

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RE can be sold in market (present traded price around 45) till 08.02 or can be applied using asba be it online or physical till 13.02 . your shares has now nothing to do with these RE and they will remain as it is in demat BUT these RE must be used as the same will vanish from demat eod 13.02 with zero value.

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Thanks for that reply, that is very helpful, so RE normally becomes like a new stock and traded accordingly.
So in this case I hold 27 shares, Is it okay to sell 17 and buy 10 shares through netbanking? That is possible right and the fundamentals of Ibull hsg apply to RE ?

I am sorry for such questions

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@ShubhS9 @aniln , Sir, I sold my 50 REs at â‚ą47/-.
Thanks for information.

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RE trade for a very very limited period and in this case only for 2 days . it has a fixed circuit of 40% plus settled as T group security.
now it is your call if you want to sell part q of RE and apply part q for partly paid share . you can apply additional shares too say you want to apply 10 RE you can apply 50-60-100-200 shares too…some additional allotment is very much possible .

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anyone who is applying for RE shares through net banking, please help which bank has listed Indiabulls Housing Finance

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There is only 1 day after today for selling RE in market . if your bank do not have online asba for this rights issue and not possible for you do physical asba your RE will lapse by eod 13.02.2024. kindly speak to customer care of bank . i am reading so many queries on this very issue that "we can not find this rights issue in asba "online .
online asba is now there with icici bank as posted by one user on other forum . may be other banks too will update by afternoon.

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Thank you Anil. HDFC net banking does have ASBA but I don’t see Indiabulls RE.

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speak to customer care firmly because in case they do not provide online and you can not do physical asba you must sell your RE by 08.02.

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