Mitcon Consultancy & Engineering Services Limited (MITCON) has announced a rights issue of 42,41,321 equity shares aggregating up to Rs. 32.23 crores. The rights issue opens for subscription on June 28, 2024, and closes on July 26, 2024.
Anyone who holds shares of Mitcon Consultancy & Engineering Services Limited as of June 20, 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 to receive Rights Entitlements (REs) if you’ve bought the shares on or before June 19, 2024. The ex-date is June 20, 2024.
Rights issue details
| Issue Period | June 28, 2024 - July 26, 2024 |
|---|---|
| RE Trading Period | June 28, 2024 - July 22, 2024 |
| RE Symbol | MITCON-RE |
| Issue Price | Rs. 76 per share (Rs. 19 on application) |
| Ratio | 6:19 |
| EX-date | June 20, 2024 |
| Record Date | June 20, 2024 |
| Tentative Date of Allotment for rights shares | August 03, 2024 |
| Tentative Date of Credit of rights shares | August 08, 2024 |
| Tentative Date of Listing for rights shares | August 12, 2024 |
This is a partly-paid issue, meaning you only need to make a partial payment at the time of application.
| The amount payable per equity share | Face Value | Premium | Total |
|---|---|---|---|
| On Application | 2.50 | 16.50 | 19.00 |
| One or more additional calls as may be decided by the company | 7.50 | 49.50 | 57.00 |
| Total | 10.00 | 66.00 | 76.00 |
If you continue holding partly paid shares of Mitcon Consultancy & Engineering Services Limited, you will be liable to pay the balance when the company calls for payment. If you have sold the partly-paid shares, the buyer will be liable to pay the remaining amount.
How to apply for Mitcon Consultancy & Engineering Services 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.