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

I bought L&TFH RE shares from market ,can i eligible to apply for L&TFH rights issue and get at 65/- per share ,At present i didnot hold any L&TFH shares in portipolio can any help me to answer this quarry

Hi, i have purchased L&Tfh -re from market so now can i apply for Re from ASBA and if yes then should i have select shareholder or individual applying for Ipo??

Yes, you are eligible to apply for rights shares of L&TFH as you are holding RE’s. You don’t necessary have to be a shareholder.

As you’ve bought RE’s from the secondary market, you’ll have to select Renouncee option.

Hi, I don’t have any L&TFH share, can I buy through Axis bank?

To apply for L&TFH rights issues you will need Rights Entitlement, this you can purchase from your trading account.

Once you’ve purchased the RE’s, you can use them to apply for rights shares, the process has been explained above in the main post.

There is no Renounce option in ASBA application so what should i do??

Which bank, can you tell?

Also, as an alternative, you can also apply using RTA’s portal.

I have some REs in my account. What happens if I dont sell them and also don’t apply for the rights issues ? Will I still get the money (= number of RE* price per RE) ? Or, I will just loose the money?

As per this support page -

  1. What will happen to my RE’s if I do not sell them?
    The REs will get lapsed and will be removed from your holdings, You will lose the premium, if any, paid to acquire those REs.

I purchased L&TFH stock on 22.01.2021
Shall I get the rights issue offer ?

You bought the shares on record date, so you aren’t eligible to receive Rights Entitlements. If you want to apply for L&TFH rights issue, you’ll have to purchase the RE’s from secondary market.

What is the process to purchase from secondary market ?

You can add L&TFH-RE to your watchlist and purchase like you normally do for any stock.

Hi… some quick questions:

  1. Is it possible to exercise half the RE’s and sell remaining in open market?

  2. Unexercised and unsold RE’s which are extinguished : does it go for zero value or that money credited to bank automatically?

  3. What if someone apply for Rights Issue through ASBA after getting RE’s and then also sell RE’s in open market? will he still get the rights allotment?


Yes, you can keep the RE’s to the extent of rights shares you want to apply for and sell the remaining.

No, the RE’s will be extinguished at zero value.

The RTA checks your Demat account for RE’s and does allotment accordingly, if you do not have RE’s in your account during allotment, you might not receive the allotment.

So we loose the money equivalent of the REs allotted to us due to stock holding (say 10 REs) and also any new REs (say 5 REs) we bought in the market ?

That is loss of cost/value of 15 REs?

Please advice.

You’ll not be losing anything on RE’s which have been alloted to you, as those are alloted at 0. Maybe loss of opportunity.

Though, you’ll lose the entire amount paid to purchase RE’s in secondary market.

I have been offered 31 right issues… And also received RE-BE in my Dmat account. So shall I have to buy RE from market price first and then to apply for right issue … How the purchase price of RE is managed in Right issue

As you have directly received RE’s in your Demat account, you don’t have to purchase the same from secondary market unless you wish to apply for more rights shares.