Questions on “online” ASBA application for Rights issue through "internet " banking ( Note : The query is NOT on physical rights application).
I holds IB Shares in 2 dmat accounts (ICICI and Zerodha) which has declared rights issue. Can I apply rights using ASBA under ONE application for this TOTAL rights entitlement through one online internet banking account? This specific query of online consolidated application using internet banking for multiple dmat accounts is not answered in any FAQ’s or offer document.
Hi What will happen if i didn’t apply for RE . Does it affect my original india Bulls share … I assume only the RE share will go lapse . kindly confirm
To the best of my understanding you can do so if PAN is same. total of 2 demat accounts plus some additional you can apply as per my understanding although no personal experience.
if you sell RE at 45 (present traded price 38 and 08.02 last trading day ) you will get 4500 for 100 RE minus brokerage etc.
if you apply asba online portal will auto calculate number of shares applied multiplied by 50 .
A basic question - If I purchase RE at say Rs 38 which is current price, I have to pay application money of Rs 50 to apply for actual shares as well, right? So in turn, I am paying Rs 38 + Rs 150 (Rights offer price) = Rs 188 for the new shares but with part payment. Is this understanding correct?
If yes, why not buy actual shares at Rs 185 from market?
38 plus 50 you are paying and share will list as partly paid share . bit of premium because now you have 2 option (1) sell partly paid share and forget about balance 100 payment (2) you have time to pay 100 rs up to one year as and when co ask for it to make the share fully paid. so time value of money invested PLUS option of early liquidate without paying balance give bit of premium .
If I have 50 REs in my demat account and while filling out the ASBA application, can I apply for 150 shares? So that if the rights issue is under subscribed, I get the allotment proportionately to the amount of shares held by me.
Yes, you can apply for any number of shares you want. The allotment will be guaranteed to the extent of REs held. For the remaining shares, the allotment will be done on a lottery basis, if you don’t get the allotment, the amount will be refunded.
For the remaining shares, will I incur the cost of RE premium which is currently at Rs 38 or I have to pay only Rs 50 + Rs 100 (later) = Total Rs 150 for each share ?
I have received REs from company. I want to apply for the rights issue. To apply for the rights issue do I have to buy REs and pay premium amount along with Aplying through ASBA. Or do I simply have ton apply online using ASBA and not do anything with the REs
NO. Since, in order to apply for Rights issue same folio is considered, having securities in two different demat will be counted as two different folios.
Q. If an individual has 10 shares of a company in one demat account and 5 shares in another, and the company has announced a rights issue in the ratio of 1:15, would they be eligible to exercise the rights?
Eligibility is determined on a folio-wise basis by the RTA. Even though both demat accounts may be linked to the same PAN, the shares would be held in separate folios in the RTA’s records. Therefore, in a situation where an individual has 10 shares in one demat account and 5 shares in another, they would not receive the rights entitlement.
However, if you want to apply for additional shares, then you can purchase the REs from the market and the apply for the entire quantity (REs received + REs bought).