Shriram Transport Finance Corporation will issue Right Entitlements (REs) to anyone who held its shares as on July 10, 2020. 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 Shriram Transport Finance Corporation or you can sell them directly.
You can check the announcement from the company here.
Issue details
Ratio
3:26
Issue Price
₹ 570
Issue Period
July 16, 2020 to July 30, 2020
RE Trading Perioduly
July 16, 2020 to July 24, 2020
How to apply for the Shriram Transport Finance rights issue?
Once you either receive the REs from the company or purchase it from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post . You can verify your entitlement on the website of the Registrar & Transfer Agent . The website will not be live until the issue opens.
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 your bank.
100 is the premium you are paying to the shareholder who is renouncing his rights and selling them to you. RE isn’t a stock, you will have to use RE’s to apply for rights shares of Shriram Transport Finance.
After the trading period of RE’s ends on 24th July, if you have RE’s you will have to apply for rights shares equal to RE’s you have and pay Rs. 570 per share on application, the window for applying for rights shares is open until 30th July.
If you think the company’s stock has the potential to rise you can apply. what you want to do is up to you and your analysis.
Presently i do not have any shares of Shriram Transport but i want to apply for RIGHT ISSUE Price of Rs.570. I have purchased 250 shares of SRTRANS-RE-BE 250 nos today ie 22nd July 2020. After 24th if i apply through netbanking shriram transport rights issue shares for 250 nos will i will be getting all the 250 shares? is it the correct procedure? pls repond sir…i am the first time investor in stock markets…and to Zerodha
Yes, you will be eligible to get 250 shares. If your bank supports, you can apply via Net Banking ASBA as well and process is similar to applying for IPO, you can read this post to know the process in detail.
Next step is explained here. You will have to apply before 30th July.
How to apply for the Shriram Transport Finance rights issue?
Once you either receive the REs from the company or purchase it from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post . You can verify your entitlement on the website of the Registrar & Transfer Agent . The website will not be live until the issue opens.
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 your bank.
If you want to buy RE’s, you can’t buy them anymore as markets have closed and so has trading window for RE’s. Today was last day of RE Trading Window.
If you have RE’s and want to apply for Rights Shares, you can apply anytime until 30th July.