Mitsu Chem Plast Limited. (MITSU) has announced a rights issue of 15,09,075 equity shares aggregating up to Rs. 21.73 crores. The rights issue opens for subscription on February 26, 2024 and closes on March 04, 2024.
Anyone who holds shares of Mitsu Chem Plast Limited. as of February 17, 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 February 16, 2024. The ex-date is February 17, 2024.
Rights issue details
| Issue Period | February 26, 2024 - March 04, 2024 |
|---|---|
| RE Trading Period | February 26, 2024 - February 29, 2024 |
| RE Symbol | MITSU-RE |
| Issue Price | Rs. 144 per share (Rs. 72 on application) |
| Ratio | 1:8 |
| EX-date | February 17, 2024 |
| Record Date | February 17, 2024 |
| Tentative Date of Allotment for rights shares | March 12, 2024 |
| Tentative Date of Credit of rights shares | March 13, 2024 |
| Tentative Date of Listing for rights shares | March 15, 2024 |
This is a partly-paid issue, meaning you only have to make part payments at the time of application.
| Amount payable per equity share | Face Value | Premium | Total |
|---|---|---|---|
| On Application | 5.00 | 67.00 | 72.00 |
The balance subscription money of ₹72 is to be paid in one call, as may be decided by the Board or the Rights Issue Committee of the Board. The company is yet to publish these specific details.
If you continue holding partly-paid shares of Mitsu Chem Plast 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 Mitsu Chem Plast 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.
