Texmaco Rail & Engineering (TEXRAIL) has announced a rights issue of 7.15 equity shares aggregating up to Rs. 164.51 crores. The company will issue Rights Entitlements (REs) to anyone who holds its shares as of October 22, 2021 (record date).
You will be eligible to receive Rights Entitlements (REs) if you’ve bought shares on or before October 20, 2021. The ex-date is October 21, 2021. 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 Texmaco Retail & Engineering or you can sell them in the market. You can check the announcement from the company here.
Issue Details
| Ex-date | October 22, 2021 |
| Record Date | October 21, 2021 |
| Ratio | 2:7 |
| Issue Price | ₹ 23 per share |
| Issue Period | November 1, 2021 to November 25, 2021 |
| RE Trading Period | November 1, 2021 to November 17, 2021 |
| Tentative date of credit | November 23, 2021 |
| Tentative date of listing | November 25, 2021 |
How to apply for the Texmaco Rail and Engineering Rights Issue?
Once you either receive the REs from the company or purchase them 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 also apply for rights shares through the website of the Registrar and 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 your bank.
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 demat account, they will lapse after the issue.
You can read more FAQs on Rights Issue and Rights Entitlements here.