Everything you need to know about the M&M Financial rights issue

Right.

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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

Yes, but i think that will be traded @premium

Are you sure @siva can you clarify

Yes, the issue will be same as Reliance, Arvind Fashion, ABFRL etc.

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.

61 crore share * 207 mp = 12,000 crore market cap.
rights issue of 61 crore shares * 50 = 3000 crore approx.

therefore total 15,000 crore / 122 crore = approx. Rs. 120 per share ?
is the above logic right?
thanks
br,
Andy

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

Rights Issue is completely different than Dividends, so the price might not correct.

Thanks Bro, for all.

so i bought today n planning to sell on 24 July, When will i get RE in my account

Issue is set to open on 28th July, so you should have RE’s in your account before that.

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what if stock is pledged

Thanks Bro, ur Great Gem

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:

hi -

  1. If i buy on 21st, I will have the shares in my demat by 23rd right(T+2 settlement) ? So I will be eligible for rights issue?
  2. And I can sell those shares on 24th and still be eligible for rights?

You should be eligible.

what if i sell my shares on 22nd? i will still have the shares on 23rd so i should be eligible right?

If you sell your shares on the ex-date, i.e. July 22nd, the shares will be removed from your account the next day by your stockbroker. On the record date, the stockbroker will be marked as the shareholder in the records of the Registrar of the company and will receive the REs. However, since the shares belonged to you, the REs will then be transferred by the stockbroker to your account once they’re listed.

You will then be able to apply for the rights shares or you can sell the REs directly in the secondary markets.

  1. The REs will be listed after the rights issue officially closes (28th July - 11th August). So how will I apply for extra shares at Rs 50? The listing price can be more than 50 too. Just want to understand more how it works.
  2. What if sell my shares on 23rd? Will I be able to subscribe to rights at Rs 50?

RE’s will be listed on the day issue opens not after issue closes. Once issue opens you can use RE’s that have been alloted to you, or you can buy them in market to apply for rights shares of M&MFIN.

Yes, you don’t necessarily need to have shares of M&MFIN in your account to apply for rights shares.