Everything You Need to Know About L&T Finance Holdings Rights Issue

Hello, I have bought 350 RE and I am not a share holder, I just wanted to know for how much shares can I apply? Also would like to know if I will get the refund for RE that I have purchased as on the website they are asking me to pay additionally to apply for Rights Issue.

You can apply for any number of rights shares you want to, but as you hold 350 RE’s, you’ll receive a guaranteed allotment for 350 shares, for remaining shares allotment will be done on a lottery basis and if you don’t receive the allotment remaining funds will be returned back to you.

No, the amount you pay to purchase RE’s goes to the shareholder who sold them to you, this won’t be considered towards the amount you’ve to pay while making the application.

Hi, I have been allotted 1148 rights issue shares which is visible on my holdings page. The P&L shows positive value. Following are my questions

  1. If don’t do any thing will this value still be there (as of today it is Rs 27,000)
  2. Is it a good idea to buy the rights issue
  3. Will this means that Rs 90 share (as of today) I am getting for Rs 65 ?
  4. Can I Buy more than 1148 allotted shares at Rs 65 per share.

No. RE’s are temporary securities which you have to use while applying for rights shares. If you don’t want to apply, today is the last day to sell them. Once the issue closes, RE’s will be extinguished from your account.

This is upto you and your view about the company.

You can apply for more rights shares as well, though you’ll receive guaranteed allotment to the extent of RE’s you hold. For remaining quantity, allotment will be done on lottery basis, if you don’t receive the allotment, remaining funds will be returned back to you.

You said RE’s are temporary securities which I have to use while applying for the rights issue. Please tell me how to use them ? I think best is to sell them so that I can realise at least the value it is showing today (Rs 27,000). Plz advice asap.

How to apply for L&T Finance Holdings 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 also apply for the Rights Issue through the website of the Registrar & Transfer Agent. The website may not be fully functional 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.

Also, I went through my AXIS BANK account to buy and it said that I can buy the rights issue till 15th Feb. So I am a bit confused why u are saying that today is the last day.

You can apply for rights shares until February 15th, but if you don’t wish to apply for rights shares and want to sell the RE’s, then today is the last day to do so, once RE trading window closes, you won’t be able to sell.

What happens if I am not able to sell.

If you don’t sell or apply for rights shares, you’ll lose the premium paid if any to purchase the RE’s as the RE’s will be extinguished once the issue closes.

Still not clear if not having share before and on record date & if purchase right issue from market then how to apply it on asba or rwap

Not having any share of Ltfh.

Even if you don’t have any L&TFH shares and have purchased L&TFH RE’s, you are eligible to apply for rights shares. You can apply either from Netbanking ASBA or R-WAP.

Dear Sir,

Please suggest me what I should do, 3 Feb I had purchased 1000 share of L&TH_RE but still not showing in demat account, if I will not purchased RE Dan what will be happen ?

Hello Sir,

I have got 17 shares, and I purchased extra shares with paying ₹25 per share with total of 111 shares showing in my account.

If I have to buy now all the 111 shares its showing ₹ 7215 in Registrar & TA does this include 17 shares which i got for ₹0 value?

If I buy paying ₹7215 for all 111 shares will all the shares will be guarantee allocated?

What will be the cost of each share after I get allocated

Like I paid ₹25 per share for extra shares + ₹65 in Registrar &TA = per share value ₹90 will be showing in my account.

Thanks in advance


Need help urgently I have purchased L&TFH-RE-R on 2021-02-09 from secondary market and its displayed in my holding. how ever when I go to the registrar website and enter all the details it does not show this share quantity for applying it.

Please can some one guide me who one should apply for purchases from secondary market.

Manish, the RE trading window has now closed so the RE’s won’t reflect in your holdings anymore. You can however still apply for rights shares until February 15th. The process to apply has been explained in the main post.

Yes, you’ve total 111 RE’s and are applying for 111 rights shares, so 65 * 111 = 7215.

Yes, as you hold 111 RE’s, you’ll receive guaranteed allotment for 111 rights shares.

For you the cost of accusation will be around 90 but average price in holdings for rights shares will show as 65, as this will be the allotment price.

The premium paid for purchasing RE’s goes to the shareholder who sold them to you.

1 Like

As you’ve bought RE’s from secondary market, this won’t show under 'No. of shares eligible for" column. You can enter the number of shares you want to apply for in “Number of shares applied for” field. You’ll receive guaranteed allotment for rights shares to the extent of RE’s you hold.

1 Like

I’ve bought the L&TFH-re-fe shares but its not showing up in my holdings, why? Money loss or it will reflective some time.

The trading window for L&TFH closed on February 10th, so the RE’s won’t reflect in your holdings anymore. You can however still apply for rights shares until February 15. The process to make an application has been explained above in the main post.

If you fail to apply for rights shares, you will lose the premium, if any, paid to acquire the REs.