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:
- 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?
- 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.
- 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.
- 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.
I have few doubts to be clarified in this aspect.
- I had purchased 500 shares 2 months ago. My requirement is, I want to sell my existing shares and want to subscribe for rights of my 500 [email protected] each and for remaining amount I will purchase renouncable trading rights in market and subscribe them too.
To make it possible, at what time is it better to exit. Here in this exit, my requirement is, to exit at best price before downtrend or rights adjustment starts. It will start reducing after record date. I.e. from 24.07.20. Can u suggest me in this regard please…
See, it’s hard to predict when M&MFIN’s price will start to correct, you have to make your own call on when to exit.
That’s fine but ex- date is 22.07.20 and record date is 23.07.20. In order to get rights till what time I need to hold these shares at a minimum point.Because I don’t want to hold these shares after 24.07.20 at any cost…Can u suggest me among ex rate or record date
Record date is 23 July, so you can sell on or after that and you will still be eligible to receive RE.
Am I eligible to rights in these 2 cases
- if I purchase shares on 22.07.20
- if I purchase shares on 23.07.20
Both not eligible. You have to buy it in 21
No you won’t be eligible since you won’t have shares in your Demat by record date, which is 23.
When you buy on 22, shares will be in your Demat on 24th, When you buy on 23, shares will be in your Demat on 27th.
If i sell the shares on 22nd, will i get the rights ?
Already answered above
It means Yes !!
If you don’t mind, Can you please advise is it a good choice if i sell the shares on 22nd and buy equal no’s in the rights ?
When will we get RE in our account ? At what price RE will appear and Can we sell them immediately ?
At what price RE will be calculated and appear in our Demat account ? post we get REs and planning to sell them off…, we do not have to pay any amount right like Rights issue is at 50 rs/share.
The RE will be credited in your account at Rs. 0.0/-. Then you can offer your RE’s at a premium you think people are will to pay. Ideally the price will adjust to match the gap between RE and M&M Fin actual share price as of that day. Also remember as they are issues rights 1:1 this will affect the share price as the number of outstanding shares will be diluted.