Everything You Need to Know About KDDL Ltd. Rights Issue

KDDL Ltd. will issue Right Entitlements (RE’s) to anyone who holds its shares as of March 31, 2021 (record date). These RE’s will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the RE’s to apply for the shares of KDDL Ltd. or you can sell them in the market. You can check the announcement from the company here.

Issue Details
Ex-Date March 30, 2021
Record Date March 31, 2021
Ratio 7:75
Issue Price ₹ 230
Issue Period April 9, 2021 to May 7, 2021
RE Trading Period April 9, 2021 to May 3, 2021

Update: The company has decided to extend the last date for the Rights Entitlement trading period to May 3, 2021 and the Issue Period until May 7, 2021. You can check the announcement from the company here.

How to apply for KDDL Ltd. 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 or offline by submitting the Application Form to the Designated Branch of the SCSB (Self Certificate Syndicate Bank). You can check the process in this post.

You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying through Netbanking ASBA.

In case you’re facing any difficulties applying for Rights Issue, you can get in touch with the RTA at 1800 345 4001 / +9140 6716 2222 or at [email protected].

KDDL RE trading name ?

The symbol is “KDDL-RE”.

What would happen if I was holding the KDDL- RE scrip after buying it from the market and continue to hold it. Can I still apply for the Rights issue or will the amount be lapsed?
Note: I haven’t had a single KDDL stock on the record date,

If you don’t apply for Rights Shares, the RE’s you hold will lapse after the issue closure date and you’ll lose the premium paid, if any.

How u can apply for rights shares for kddl re as purchased it from market after record date and holding it also which I can apply? And do I have to make any payment for the shares I am holdings in my demat account of zerodha? And when I spoke to RTA for kddl re kfintech people they you can only apply for rights shares with physical form through ASBA bank with SCSB and they don’t even said me which bank? And also any other process online to apply for rights shares ? and I don’t want to own it just my investment amount should reflect in my zerodha broking account guide exact process?

Rights Entitlement (RE’s) are temporary securities which give you right to apply for rights shares. When you’re making application for rights shares, you’ll have to make payment of Rs. 230 per share.

You can check the list of SCSB’s here.

You can also apply online through Netbanking ASBA, if the issue is available for subscription on the Netbanking portal.

I need your advice. I’m holding 325 shares @345 Rs. It is worthy to apply for shares by adding Rs. 230 more per share?

This must be regular shares of KDDL.

To apply for rights shares, you’ll need RE’s (Rights Entitlements) of KDDL. If you’ve RE’s, you can apply for the rights shares.

Also, if you’ve RE’s and fail to apply for rights shares before issue closes, you’ll lose the premium paid, if any, to purchase the RE’s.