Everything You Need to Know About the Indian Hotels Ltd. Rights Issue

[RLM]

@ShubhS9

to trade the REs which are in the demat account ; do we need the POA signed ?
if the POA is not signed do we have to give you DIS slip book or E-DIS or is there any other way out ?

i know ; if there is no POA signed and if the shares (which are already in demat account) are sold then ; it will go in shortsell auction penalty !

The same principle also applies on the REs ?

[ShubhS9]

@RLM

to trade the REs which are in the demat account ; do we need the POA signed ?
if the POA is not signed do we have to give you DIS slip book or E-DIS or is there any other way out ?

You don’t need to submit POA. If you’ve not submitted POA then you’ll have to authorise sell transaction using TIPN as you normally do while trading shares.

[amar]

@ShubhS9

you will lose the premium paid to acquire them

I don’t think I paid anything. Those just turned up in my Upstox account and when I transferred Upstox shares to Zerodha they were being shown under discrepancy page. Now they are gone. So got to talk support about it.

But again, what did you mean by “lose the premium paid”? I haven’t paid anything. Did you mean it for someone else who would have, if, bought it from me? And me being an existing shared holder of India Hotels got the rights issue for free based on my current number of shares held?

[Shravan_B_K]

Hi Amar,

All the shares holders of India Hotels would have received rights entitlements(REs) in the ratio of 1:9 meaning if you held 90 shares you would have received 10 REs. These REs are tradable instruments which could have been bought from the open market during the trading period from Nov 24th to Dec 2nd which has lapsed now. So these REs are which can be converted into shares of India Hotels by applying to the Rights issue with the RTA before 8th of December at Rs 150 per share. If you don’t apply for the rights issue the REs provided by you will lapse post Dec 8th. Please apply for the rights issue as per the procedure mentioned below if you want the REs to be converted to shares of India Hotels

@ShubhS9

How to apply for the Indian Hotels 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 . The website might not be fully live until issue opens for subscription.

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 Shubh meant by losing premium is for those who were not alloted REs by India Hotels but had bought these REs from the open market during the trading period. If such people don’t apply for the rights issue by Dec 8th then they stand the chance of losing the premium paid to acquire these REs.