Going through this article if we bought shares today 22nd it will still remain in demat account of seller only on 23rd and hence we won’t be eligible for RE.
3)if shares allotted at after 3:30 PM on 23rd is there any impact to apply for right issue ?
Don’t see any reason why there will be an issue. You’ll be considered eligible as long as the shares are in your demat account on 23rd.
In case you sell on ex-date or had pledged the shares with your broker for margin, the REs would first be credited to your broker then be transferred to you.
those who had bought a day before when price was at 200+ and now its 150+ so will there be loss who had applied? how the rights issue work? the Re will be around 50…pls clarify
Those who bought at 200+ are going to get 1 RE for every 1 share they held, which they can use to apply for more shares of M&MFin or sell those RE’s for a premium which will compensate for this correction in price.
ok…thanks…so if i buy today so will i be eligible for RE’s…as i see some confusion on credit in demat…T+1 or T+2?
You won’t be eligible for receiving RE’s if you buy shares today as you won’t have shares in your Demat account on Record Date which is tomorrow.
As long as you receive the shares in your demat account by July 23rd midnight, you’ll be marked as an entitled shareholder. (Normally you’ll get the shares in the evening of the T+2 day)
very nice i accumulated MAHINDRA & MAHINDRA shares today now holding 4.5k shares
i dont know what to do and how this right works.
pls guide
Hi
I have brought 1000 shares @235 on 21st July
Now what should i do?
M&M Finance will allot you 1000 RE’s, which you can use to apply for 1000 more shares of M&M Fin at Rs. 50 per share or sell them in market at premium when trading window for RE opens.
I Have bought 1k shares on 21st and now they are reflecting in my demat acct and I think I would be eligible for RE which i trade in secondary market, my question is what would be the validity of RE and I I don’t execute it for applying right issue, will RE be lapsed and does not show additional 1k shares in my demat acct??
Hi,
I have bought 100 shares of Mahindra finance on 21/07.
What I have to do for rights shares?
Price of shares is adjusted in demat account. What happened to remaining amount?
Sharad
Hi,
what is the CDSL Client ID to login below . When I tried with my demand account ID 16 digit number, it says an invalid #.
RE’s that you will receive will remain in your Demat until M&M Financial’s issue is open, once issue is closed on 11 August these RE’s will be removed from there.
You have two options.
- Use the RE’s you get to apply for more shares of M&MFin.
- If you do not wish to apply for rights shares, you can sell them in market at premium when RE trading window opens.
You hold 100 shares of M&MFin, you will receive 100 RE’s, which you can use to apply for rights shares at discounted price of Rs. 50 per share or sell those RE’s at premium when trading window opens.
I will get RE shares in my account automatically?
Or I I have to apply for them for issue which opens on 28th?
RE’s will be credited to your account before issue opens on 28th July. On allotment you will receive email and SMS from CDSL stating credit of RE’s.
RE’s aren’t rights shares you will have to use them to apply for rights shares of M&MFin, on application you will have to pay Rs. 50 per share.
If you do not wish to apply for rights shares, you can sell RE’s at premium in market when trading window opens.