Everything You Need to Know About the NxtDigital Rights Issue

NxtDigital Ltd. has announced a rights issue of 96.2 lakh equity shares aggregating up to Rs. 288.6 crores. The company will issue RIghts Entitlements (REs) to anyone who holds its shares as of October 25, 2021 (record date).

You will be eligible to receive Rights Entitlements (REs) if you’ve bought shares on or before October 21, 2021. The ex-date is October 22, 2021. 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 NxtDigital Ltd. or you can sell them in the market. You can check the announcement from the company here.

Issue Details

Ex-date October 22, 2021
Record Date October 25, 2021
Ratio 2:5
Issue Price ₹ 300 per share
Issue Period 15th November 2021 to 29th November 2021
RE Trading Period 15th November 2021 to 24th November 2021
Tentative date of credit To Be Confirmed
Tentative date of listing To Be Confirmed

How to apply for the NxtDigital Issue?

Once you either receive the REs from the company or purchase them 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 also apply for rights shares through the website of the Registrar and Transfer agent.

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.

What will happen to my purchased holding of RE shares if I do not apply for the rights issue?

Your REs will lapse and you will lose the premium paid to acquire them. The RE will be in the form of temporary demat securities which will lapse if not renounced/exercised once the trading window is closed.

I don’t have the shares but bought REs, am I still eligible to apply for the rights issue?

In case you have bought REs but don’t have shares, you’re still eligible for the rights issue. You may apply for the rights shares either through the RTA’s portal or via net banking ASBA if your bank allows it. If you don’t take any action, and let the REs remain in your demat account, they will lapse after the issue.

You can read more FAQs on Rights Issue and Rights Entitlements here.

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How to sell my rights issue on exchange?

You can sell the REs (Rights Entitlements) in the market during the trading window, the process is similar to selling the shares from holdings. The trading window for NXTDIGITAL REs in from 15th to 24th November.

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Where will it be visible? Will it be visible in corporate action section in console?

It will be visible in the holdings section of Kite.

Reproducing extract from the Rights Issues and Rights Entitlements (RE) - FAQs section

" Q. Will the rights entitlement automatically be shown on kite holdings. Will I be able to sell it?

Once the REs are credited to your account, you will be able to see and sell them like normal cash market scrips. "

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