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 Price||₹ 50|
|Issue Period||July 28, 2020 to August 11, 2020|
|RE Trading Period||July 28, 2020 to August 7, 2020|
|Listing date||August 27|
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