Everything You Need to Know About the Bharat Gears Rights Issue

Bharat Gears Ltd. (BHARATGEAR) will issue Right Entitlements (RE’s) to anyone who holds its shares as of October 29, 2021 (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 Bharat Gears or you can sell them in the market. You can check the announcement from the company here.

Issue Details
Ex-Date October 28, 2021
Record Date October 29, 2021
Ratio 1:10
Issue Price ₹ 105
Issue Period November 22, 2021 to December 6, 2021
RE Trading Period November 22, 2021 to December 2, 2021
Tentative Date of Allotment December 16, 2021
Tentative Date of Listing December 21, 2021

How to apply for Bharat Gears 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 rights shares through the website of the Registrar and Transfer agent. The website might not be fully live until the issue opens for the subscription.

You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying through Netbanking ASBA.

@ShubhS9 please clarify below points?

  1. As a Renouncee, Am I eligible to use ASBA option?
  2. Does IDBI NetBanking support ASBA for rights issue?
  3. If I am shareholder and also purchased some PE from online platform then what option I have to select - Shareholder or Renouncee?

Yes, you are.

Should be available. You can check with the bank once. If not available, you can also make payment through portal provided by the RTA, you can check out the process above.

You can apply under shareholder option and include all the quantity of REs you hold (those allotted as shareholder and also those purchased from the secondary market). You will get guaranteed allotment to the extent of RE’s you hold.

I have purchased RE’s on 1st December and I am not existing share holder of Bharat Gears. Till now I have not applied for RE’s as per your post. I would like to know whether i can get back my money or apply for RE’s now

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The application window for Bharat Gears rights issue closed on 2nd December. You cannot apply for rights shares now. As a result, you will lose the entire amount paid to purchase the REs.