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

Hey @ShubhS9

I am a shareholder of M&MFIN as on record date and I was entitled to have RE shares. I have applied for rights issue as well. Now, my doubt is, the RE shares which are trading, Can I sell those?

If you have applied for rights shares, you should not sell the RE’s. The RTA will check for RE’s in your Demat account after the closure of the issue, if there are no RE’s, you won’t be eligible to receive rights shares.

Hi guys I need few clarification

  1. I have already applied for rights . Can I buy more rights from market and apply for them again

  2. if I buy RE at 80 then plus 50 equals 130 would be the cost per equity share is this right?

Multiple applications with same PAN will get rejected. If you buy more RE’s and want to apply with those.

  1. If you applied via ASBA, you will have to cancel that application and make new one.

  2. If you applied via RTA’s website, you can make an incremental application for the RE’s you have bought which will get tagged to your earlier application.

The cost of buying the rights shares for you will be 130, yes.

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Hello Team Zerodha,
This is my 1st purchase of rights issue & very confusing one…
I have 20 shares of M&MFIN (bought in May2020) and was entitled for 20 M&MFIN RE, so via ASBA I brought 80 shares (20 as per the entitlement & 60 additional) in one go, paid 4k via gpay.
My questions are…

  1. How and when do I come to know of the allotment of these 80 shares bought via ASBA - RWAP.
  2. As I was uncertain of allotment, I bought the 20 M&MFIN RE shares listed in my demat ac @ rs 71 each… For 2 - 3 days it showed as 20 shares in my demat…But now against M&MFIN RE it shows 40 shares in my demat ac…

Should I assume that only 20 M&MFIN RE shares are allotted out of the 80 shares i bought via ASBA?
3. Will i need to pay more for the share bought via ASBA i.e. 80 shares @ rs50/- plus something to company
4. How & when do I pay them?
5. For the 40 M&MFIN RE shares listed in my demat do I still need to pay additional to company? How and when to pay? Thank you in advance.

You will receive email from Registrar on allotment, or CDSL will send you email and SMS when this shares are credited to your Demat account, credit of shares to your Demat account should happen by August 25th.

You had 20 RE’s and bought 20 more from market, so it is showing 40.

You have 40 RE’s in your demat account now, if you don’t sell, you will receive allotment 40 rights shares. For the remaining 40 shares, if you don’t receive allotment remaining amount will be credited back to your bank account.

You have already paid when you applied for rights shares, you won’t have to pay more.

You have already paid for RE’s, you don’t need to pay company anything.

Hi Shubh…

I have a doubt regarding m&mfin rights issue… Please help me with that…
I bought 180 shares on 22st july. And I got Re shares in my holdings. Since I don’t know more about these right issues I sold off all Re shares in my account. I thought that by selling these re shares the previous 180 shares will get vanished and I will get my invested money back… Now the shares that i bought for 227 are still in my holdings.i can’t even sell them now because the price is drastically down. Can you please let me know what can i do now?

Can i get a reply?

Hello Shubh.
I still did not understand how 40 M&MFIN RE shares are listed in my demat?
I bought only 20 M&MFIN RE shares?

Other 80 M&MFIN RE were applied on ASBA - RWAP

You held 20 M&MFIN shares, for which you received 20 RE’s and you bought 20 RE’s from market at Rs. 71. So 20 + 20 = 40.

On ASBA you applied for 80 rights shares, not RE’s. Rights shares you will receive on or about 25th August.

Hello shubh. Please reply

You held 20 M&MFIN shares, for which you received 20 RE’s and you bought 20 RE’s from market at Rs. 71. So 20 + 20 = 40.

Hello Shubh,
By this you mean that Zerodha auto credited the 20 RE shares to me? and took rs50 x 20 shares (1000rs) from my funds? but this is not the case. amount taken is 1440 which is the 20 shares I bought @ 71rs each
Sorry again, this beats me.
Also at the end of this (Rights issue) what do I need to pay to get/keep these 40 shares.
Let me make it more simple. If I had not bought 20 RE shares @ 71rs each from Zerodha, How could I have bought shares on Zerodha @ 50rs as given by company?

M&MFIN shares price got adjusted to Rights Issue, that was the reason for decrease in price. For that you got compensated with RE’s, which you sold in market, so you recovered most of the value. Regarding whether what you should do with those shares, I think you need to make your own call.

Now the loss is more than the profit we received… By seeing the trend of the stock ot is nowhere to reach 230…Now is there any option that we can apply for rights issue?
I am asking for a suggestion.

To apply for rights shares, you will have to buy RE’s, without RE’s you cannot apply.

1440 is the amount you have paid to buy RE’s from market, not rights shares.

If you have applied for rights shares, you have already paid through your Bank account, you don’t have to pay anything more. Just keep RE’s in your account to stand eligible for allotment.

The RE’s aren’t rights shares. The RE’s are used to apply for rights shares, which you have to do via ASBA or RWAP website. You can’t apply for rights shares via Zerodha.

I bought 180 shares at 227rs which made me eligible for rights issue and the 180 RE’s got credited and I sold them.

Now I want to buy 360 RE’s again to participate into rights issue.

Can i do that?

If so what will be my average share price?


I was wondering when you would have bought the m&mfin shares at Rs. 159 as I recall that price is available on 22nd July?
But to participate in rights issue we have to buy those shares on or before 21st July.

Could you please let me know how you arrived at that price?

Thanks in advance…

Well, by mistake I bought the shares under RE category at Rs78.5 .

Yes you can do that.

@ShubhS9 i have M&M RE in two demats , how can i apply through both.