Latim Metal And Industries Limited. (LATIMMETAL) has announced a rights issue of 4,41,57,150 equity shares aggregating up to Rs. 37.53 crores. The rights issue opens for subscription on January 10, 2024 and closes on January 29, 2024.
Anyone who holds shares of Latim Metal And Industries Limited. as of January 02, 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 for receiving Rights Entitlements (REs) if you’ve bought the shares on or before January 01, 2024. The ex-date is January 02, 2024
Rights issue details
| Issue Period | January 10, 2024 - January 29, 2024 |
|---|---|
| RE Trading Period | January 10, 2024 - January 23, 2024 |
| RE Symbol | LATIMMETAL-RE |
| Issue Price | Rs. 8.5 per share (Rs. 4.25 on application) |
| Ratio | 1:2 |
| EX-date | January 02, 2024 |
| Record Date | January 02, 2024 |
| Tentative Date of Allotment for rights shares | February 06, 2024 |
| Tentative Date of Credit of rights shares | February 07, 2024 |
| Tentative Date of Listing for rights shares | February 12, 2024 |
This is a partly-paid issue, meaning you only have to make part payment at the time of application.
| Amount payable per equity share | Face Value | Premium | Total |
|---|---|---|---|
| On Application | 0.5 | 3.75 | 4.25 |
| One or more additional calls as may be decided by the company | 0.5 | 3.75 | 4.25 |
| Total | 1 | 7.5 | 8.5 |
If you continue holding partly-paid shares of Latim Metal And Industries Limited. 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 Latim Metal And Industries Limited 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;
- Online via Netbanking ASBA
- Offline by submitting the Application Form to the nearest branch of SCSB (Self-Certified Syndicate Bank)
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.