Mahindra Financial will issue Right Entitlements (REs) to anyone who holds its shares as on July 23, 2020 (record date). The settlement of a stock takes two trading days in India which means you’ll have the shares in your demat account on the record date if you’ve purchased it on July 21st. After July 21st, the shares will trade ex-rights i.e. without the rights entitlement benefit. The ex-date was July 22nd.
If you sold your shares on the ex-date you’ll still be entitled for the rights but the REs will first be credited to your stockbroker’s account who will then send it to your demat account.
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 Mahindra Financial or you can sell them directly.
You can check the announcement from the company here .
Issue details
Ratio
1:1
Issue Price
₹ 50
Issue Period
July 28, 2020 to August 11, 2020
RE Trading Period
July 28, 2020 to August 7, 2020
Listing date
August 20
updated on August 20th
How to apply for the Mahindra Financial rights issue?
Once you either receive the REs from the company or purchase it 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 verify your entitlement on the website of the Registrar & Transfer Agent . The website will not be completely live until the issue opens.
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.
Toll-free number of the Registrar to the Issue: 18004258998 / 18003454001
Hi, M&M announced its rights issue so i want to buy shares tomorrow, n sell after the next day of record date still I’m eligible to get the shares of rights issue or should i have to hold the shares until rights issue completed.
Record date for determining eligible shareholders is 23 July, if you hold shares on this date you will be eligible to receive RE’s, even if you sell shares later.
Keep in mind though RE’s aren’t rights shares, you will have to use RE’s to apply for rights shares.
Will the Rights Entitlement be traded in the same way as for reliance and Arvind fashions.Can I buy RE from secondary market and then apply for Right issue
Hi guys will you’ll be doing a quick 1 pager on the M&M Fin rights issue?
And a question around the number of shares. M&M Fin already has 61 crore shares and they are adding an additional 61 crores shares. can someone help with calculating the potential share price post listing. Please see if I have the right math done below.
ShubhS9 Thanks for reply, sorry one more question is there any possibilities that share price may correct on Record date i.e 23 July, Like others shares correction on Dividend Record date,
pls let me know i bought the M&M Fin Shares today n will on 24 july, hope i’ll get Rights Issue
The broker will receive the REs in their demat account and subsequently be able to make an off-market transfer to the respective client accounts. So, the client will receive the REs even if they don’t unpledge their holdings
@ShubhS9 im planning to hold the share for short term with SL of 180 Bcoz it gave breakout on daily TF so let’s see how it goes, I think i bought it on high price, let’s hope for the best:crossed_fingers: