Rainbow Foundations Ltd. (RAINBOWF) will issue Rights Entitlements (REs) to anyone who holds its shares as of March 11, 2022 (record date). You will be eligible to receive Rights Entitlements (REs) if you have bought the shares on or before March 9, 2022. The ex-date is March 10, 2022.
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 Rainbow Foundations Ltd. or you can sell them in the market. You can check the announcement from the company here.
Issue Details
| Ex-date | March 10, 2022 |
| Record Date | March 11, 2022 |
| Ratio | 8:1 |
| Issue Price | â‚ą 11 per share |
| Issue Period | March 25, 2022 to April 18, 2022 |
| RE Trading Period | March 25, 2022 to April 11, 2022 |
| Tentative Date of Allotment | April 26, 2022 |
| Tentative Date of Listing | May 2, 2022 |
How to apply for the Rainbow Foundations Rights 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. The website might not be fully live until the issue opens for the subscription.
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 Zerodha account, they will lapse after the issue.
You can read more FAQ’s on Rights Issue and Rights Entitlements here.