I was eligible for 7 RE shares and the same has been credited to my account. Now my question is if I want to apply for say 20 additional RE shares through the RWAP website…do I need to also purchase additional 20 shares from the market which are now trading ~ 207 or I don’t need to do anything additional apart from applying for 27(7 + 20) shares through the website?
If you need guaranteed allotment for all the shares you apply. You’ll have to hold that many number of REs in your demat account.
You can apply for as many shares as you wish, irrespective of the REs you hold, but guaranteed allotment allotment will be only to the REs you are holding. For remaining, it’ll depend on the subscription and will be alloted on random basis. If you don’t receive the allotment, amount paid will be refunded.
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Thanks Shubh for the reply. A follow up question pls.
If I’m looking for guaranteed allotment for say 20 additional shares I would need to purchase that now at ~ 205 and then pay the first call amount also which is 133(and in total 535). So isn’t it the same as buying it now from the open market which turns out be a bit cheaper. Am I thinking right or is there a flaw here.
I too have same question. In fact if we buy @ 205 we need pay 133 for the application so total payment is Rs 338/RE. Also the remaining payment is 401.25 will have to paid later. Effectively the cost of a share will become = 133 + 205 + 401.25 = 739.25. Today CMP of airtel is 691. @ShubhS9 please clarify if this assumption is correct?
@iamSridhar @Gaurav_Bhandari Yes, you are right about your cost of acquisition. It’s up to you, whether you want to buy REs from the secondary market and apply for rights shares or to invest directly in fully paid shares of Airtel.
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Hello!
I have 02 RE shares. I won’t buy more. But through ASBA can I apply for 20 shares? That’s in spite of holding only 02 REs? Would they allot me minimum 02 rights PP shares or more according to the subscription?
One more question. Can I apply today on October 11? or should I wait until after October 14 to apply?
Regards,
Amber
Yes, 2 shares are guaranteed if call money is paid within the stipulated time.
The other 18 shares might allotted if there’s an undersubscription, even then it is done on a random basis.
I think the issue is open until 21st October, so you could apply anytime before that. The REs must stay in your demat account as the RTA will check before allotting the PP shares.
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I have bought Airtel RE shares today, I am not an existing Airtel Shareholder.
Since I have bought them today I believe I would get the delivery of the RE shares only in 2 days.
Do I need to wait for delivery of RE shares before applying for the Rights issue? What would be the last date for applying the Rights Issue, i believe its 21st October for me as well ?
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The RTA will check the demat account for REs during allotment. However, it is asking the investors to declare whether they already have the REs or have purchased it. So you will have to wait until the REs are credited to your demat account.
I have following questions
1> I have 70 Bharti Airtel stocks so by 1:14 I got 5 AIRTEL-RE-BE so I am guaranteed for 5 shares if I apply through ASBA right ?
2> what would be effective cost for me for those 5 shares ?? I believe total (133.75 + 401.25) = 535 ?? as of now price of one stock is 686 while my acquisition cost would be 535. so am I getting those 5 shares at discount ??
3> As company is issuing more shares, it means its diluting the equity so is it possible Airtel stock might go back to 535 or something more than 535 and way less than 686 ?? stock price will try to find a equilibrium between current market price and Right issue stock price ?
4> if I apply for say 40 Stocks through ASBA and I have only 5 AIRTEL-RE-BE and if issue is undersubscribed then I should be able to get additional share apart from 5 guaranteed shares right ? say if I get 10 shares so for the remaining shares my acquisition cost would be same 535/per stock ??
Right.
Yes, you are getting rights shares at discount. Your total cost of accusation will be 135.75 + 401.25 (balance amount to be paid).
Yes, the issue of rights shares will have an impact on stock price but that would already get factored on ex-date. After that, the stock price of Airtel will behave according to the market sentiment.
Even if the issue is undersubscribed, the allotment for additional shares won’t be guaranteed, it will be done on a random basis. The acquisition cost will remain the same.
I have recieved 21 rights entitlement from company. Also I purchased 200 more Rights entitlement from market. On RTA site we have to choose option – shareholder or renouncee. Which should I choose. When I choose renoncee message pops that you are shareholder. In share holder option they only show 21 share. If I pay for 221 shares will the RTA check my demat for additional 200 shares which I purchased from market.
I suppose they will check the demat account even if you apply for all 221 as shareholder as explained here. @ShubhS9 Can you please confirm
You can apply under the shareholders category. The RTA is only showing the eligibility as on record date. They do not have systems in place to reconcile the records of purchased REs in real-time. You can apply for your purchased REs and the RTA will check whether you have the requisite number of REs when they are performing allotment.
So you can apply for all the 221 REs you hold and will receive guaranteed allotment.
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20211029-36
Trading Members of the Exchange are hereby informed that effective from Tuesday, November 02, 2021, the new securities of BHARTI AIRTEL LTD (Scrip Code: 890157) shall be listed and permitted to trade on the Exchange in the list of ‘A’ Group of Securities.
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Hi SubhS9,
I have a question regarding Airtel rights.
After applying for right issue , I have allotment of RE shares in my demat account. During applying I have only paid ₹133.75 for the shares which I have applied. When will the remaining amount will be deducted? Should I do need anything from my end?
Thank you
SD
You will have to pay the remaining amount when the company makes a call. You will receive a notice from the company whenever the company decides to make the call.
Thank you.
Do you know the date for this?
Is the money will be automatically deducted from bank account? Or there will be notification where we need to pay the remaining balance?
Currently the allocated stocks is showing under my Demat account .
Thank you
No, the date is not yet known and you will get to know the date through a notice from the company as stated by Shubh above.
Nope you would have to make the payment following similar process as you did for making payment for these partially paid up shares.
And these PP shares are tradable instruments and you may even sell these in the market if you don’t want to hold on to them 
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