Everything You Need To Know About Mold-Tek Packaging Rights Issue

Mold-Tek Packaging Limited will issue Right Entitlements (RE’s) and Warrants to anyone who holds its shares as on October 22, 2020 (record date).

These RE’s will be temporarily traded on the stock exchanges and will then be extinguished.

You can either use the RE’s to apply for the rights shares of Mold-Tek Packaging or you can sell them in the market. You can check the announcement from the company here.

Issue Details
Ex-Date Oct 21, 2020
Record Date Oct 22, 2020
Ratio 1 Rights Equity share along with 6 detachable Warrants for every 50 shares held
Issue Price per Equity Share 180
Issue Price per Warrant 184
Issue Period Oct 28, 2020 to Nov 11, 2020
RE Trading Period Oct 28, 2020 to Nov 06, 2020
Tentative Date of Allotment Nov 18, 2020
Tentative Date of Listing Nov 27, 2020

Payment Schedule for Rights Equity Shares

Schedule Face Value Premium Total
On Application 1.25 43.75 45
Upon one or more subsequent calls made by the Company 3.75 131.25 135
Total 5 175 180

Payment Schedule for Detachable Warrants

Schedule Face Value Total
On Application 46 46
On Warrant Exercise 138 138
Total 184 184

Tenure of the Warrants

18 months from the date of allotment of the Warrants, i.e. Warrants which are not tendered to be converted into Equity Shares at the completion of the Warrant Exercise Period (18 months), shall lapse and the relevant holder/s of such Warrants shall not be entitled to allotment of the Equity Shares against such Warrants.

Warrant Exercise Period

A period that commences on the completion of the 1st month from the date of allotment of the Warrants and shall continue up to the completion of the 18th month from the date of allotment of the Warrants.

How to apply for Mold-Tek Packaging 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.

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.

So here I can buy right at 180 per share.

And current Market Price is 260.

Let’s say by the time of RE listing the price is 240.

So I have 60 rs profit ?

Not exactly. If you weren’t holding shares of Mold-Tek as on October 22nd (record date), to apply for rights shares (at Rs. 180) you will have to purchase RE’s (Rights Entitlement) in secondary market, for which you will have to pay premium to the shareholder who is selling them to you.

So 180 + premium ? Correct

This is Like all other Right issue or something different?
Is anything to do with warrants ? Or I can consider as usual Right issue process.

Right.

Though this is partly paid issue, off the Rs. 180, Rs. 45 has to be paid upfront when you apply, for remaining the company will make further calls. Just like Reliance Partly Paid issue.

This is like all other Right issues.

You can consider the usual Rights Issue process.

Warrants I think are only for eligible shareholders, giving them option to excercise them anytime within specified period of 18 months to get equity shares of Mold-Tek. Not sure whether these will trade on exchange, as there was no mention regarding this in Letter of Offer, will have to wait and see what happens.

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RE will list on bse/nse from 28 October to 6 November …can be applied for equity share and warrants from 28 October to 11 November.
1 RE means FIRM allotment of 1 partly paid equity share ( 45 paid out of 180)and 6 partly paid warrants ( 46 paid on each out of 184) and both will have listing on stock exchanges.
warrants can be used to buy fully paid share on balance payment after one month of allotment till 18 months at the choice of warrant holder.

1 RE means if you apply you will get 1 partly paid share and 6 warrants . there is no provision to apply either of these means you have to apply both together.

OFFER price 1284 for 1 share and 6 warrants Market price of 7 shares 1820 Difference 536 …amount payable on Application…321 Means in my view RE should value around 240-260 …LISTED AT 116.05 and will remain in UC for 2-3 days !

(1) Already applied as shareholder through ASBA and today on 6 November 2020 bought some RE and obviously it has to be applied as Renouncee. There is a provision in ASBA to modify the already made application . can i modify it and add quantity i wish to apply as renouncee because there is no provision to apply as renouncee on ASBA page.
“OR is it that Renouncee can not use ASBA but only RWAP ?”
(2) there is a provision to apply as renouncee on RWAP but will it become a multiple application as pan no , demat and bank details are same ?

@ShubhS9 @siva

You can modify the ASBA bid, you don’t have to specify renouncee if not required by the Bank.

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@s
https://www.sebi.gov.in/sebi_data/commondocs/asbaprocess1_p.pdf
" ONLY SHAREHOLDERS CAN APPLY THROUGH ASBA as per sebi …"
5. Who can apply through ASBA facility?
SEBI has been specifying the investors who can apply through ASBA. In public
issues w.e.f. May 1, 2010 all the investors can apply through ASBA.
In rights issues, all shareholders of the company as on record date are permitted
to use ASBA for making applications provided he/she/it:
a. is holding shares in dematerialized form and has applied for entitlements
or additional shares in the issue in dematerialised form;
b. has not renounced its entitlements in full or in part;
c. is not a renouncee;**************************************************
d. who is applying through blocking of funds in a bank account with the Self
Certified Syndicate Bank.

You already have RE’s as shareholder, and even if you purchase more from market, you can still apply as shareholder.

During the allotment, RTA does Demat check for RE’s, if you have RE’s equal to the number of shares you have applied for you will get the allotment.

If you have doubts, best if you get in touch with the RTA, you can mail them at [email protected]

YES i have mailed to RTA and CS and received immediate response as ::::
Dear Investor,
CAF No.: XXXX
Folio No / DP CLIENT ID.: XXXXXX
Name: XXXXXXXX
Please note that for additional market purchase RE s you can apply through R-WAP by clicking on renounce option through below link .
moreover sebi circular point no 5 sub point C clearly state that you can not be a renouncee to use ASBA …

i puchase 13 share mold tec re for 850rs in zerodha ,den i applied for right issue paying more 4300 rs through linkintime.
nw hw much ill get share n in hw much amount??plz sir reply

You will get 1 Partly Paid share of Mold-Tek and 6 Warrants for every Rights Entitlement you hold.

You hold 13 RE’s so you will be entitled to receive 13 Partly Paid shares of Mold-Tek at Rs. 45 each (paid out off 180, the company will make further calls for the remaining value, which you will have to pay if you hold the shares) and 6 Warrants for each RE you hold ie. 78 Warrants at Rs. 46 each (paid out off 184, you will have to pay the remaining amount of 138 when you convert these Warrants to fully paid equity shares).

  • A note on Warrants:

Tenure of the Warrants

18 months from the date of allotment of the Warrants, i.e. Warrants which are not tendered to be converted into Equity Shares at the completion of the Warrant Exercise Period (18 months), shall lapse and the relevant holder/s of such Warrants shall not be entitled to allotment of the Equity Shares against such Warrants.

Warrant Exercise Period

A period that commences on the completion of the 1st month from the date of allotment of the Warrants and shall continue up to the completion of the 18th month from the date of allotment of the Warrants.

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Ohh that means overall ill loose my maximum money?if its den it was no use for applying right issue!!

FOR 13 RE application you might have paid 4173 and by 17 November you will get 13 partly paid share and 78 partly paid warrants …as per present schedule the same will list on nse/bse by 27 November but has been observed in most rights cases , listing take place much earlier.

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Hi I purchased 196 shares of Moldtek -RE, on 5th and 6th November, can anyone guide me how to go about it further?, i am gone a lose the entire money if i don’t apply right issue again in linktime???

Thanks, but do i have to pay more later ?

You will have to apply for rights shares from LinkInTime website, failing to do so by 11th November will mean you will lose all the money you have paid to purchase the RE’s, as these will be extinguished once the issue closes.

The process to apply as explained above.

How to apply for Mold-Tek Packaging 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 .

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.