Everything You Need to Know About the Bhagiradha Chemicals and Industries Rights Issue

Trading Announcements
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Bhagiradha Chemicals and Industries (BHAGCHEM) will issue Rights Entitlements (REs) to anyone who holds its shares as of April 9, 2022 (record date). You will be eligible to receive Rights Entitlements (REs) if you have bought the shares on or before April 6, 2022. The ex-date is April 7, 2022.

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 Bhagiradha Chemicals and Industries or you can sell them in the market. You can check the announcement from the company here.

Issue Details
Ex-date April 7, 2022
Record Date April 9, 2022
Ratio 4:17
Issue Price ₹ 400 per share
Issue Period April 19, 2022 to May 4, 2022
RE Trading Period April 19, 2022 to April 28, 2022
Tentative date of allotment May 9, 2022
Tentative date of listing May 13, 2022

How to apply for the Bhagiradha Chemicals and Industries 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 Netbanking ASBA or offline by submitting a Application Form to the Designated Branch of the SCSB (Self Certificate Syndicate Bank). You can check the process in this post.

You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying for the 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 FAQ’s on Rights Issue and Rights Entitlements here.

2 Likes
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Hi @ShubhS9 ,

I dont have shares on this .Can i apply via Renounce option @400 rs ? If i get allocated what is the next process is it like part payment and pay further difference ?

Once i get allocated can i be able to sell in current price of 940+,- ?

Please can you help me understand asap

thank you Krishna

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If you wish to apply for rights issue, you will have to purchase REs (Rights Entitlement) from the market, this will make you eligible for applying for rights shares.

This is not a partly-paid issue. You’ll have to make full payment of Rs. 400 per share on application.

Yes, once the rights shares are listed on the exchanges, you will be able to sell at prevailing market price.

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Hi @ShubhS9

thanks for the response

in HDFC bank it shows the following

Issue Name Issue Type Issue Price /Price Band Lot Size Start Date End Date Prospectus Action
RI - BHAGIRADHA CHEMICALS & INDUSTRIES LTD(SHAREHOLDERS & RENOUNCE CAN APPLY) Single Bid Rs 400 1 19-04-2022 04-05-2022 Download Apply

If i apply does it mean i have applied/purchased for rights entitlement from market ? after that how can i apply for rights shares or without applying for rights shares can i sell ? because i never bought shares in Bagiradha till now

Once again thanks for answering my questions it really helps

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You will have to purchase REs through Kite, just like you purchase stocks. This is the trading symbol for Bhagiradha Chemicals & Industries, RE:

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Once you’ve purchased the REs, you can apply through Netbanking ASBA. The allotment for rights shares will be done on 9th May, while the shares will be listed on the exchanges on 13th May. Once listed, you can sell the shares anytime you wish to,