Everything you need to know about the Rushil Decor rights issue 2023

Trading Announcements
1

Rushil Decor Ltd. (RUSHIL) has announced a rights issue of 66.35 lakh equity shares aggregating up to Rs. 107.49 crores. The rights issue opens for subscription on May 2, 2023, and will close on May 12, 2023.

Anyone who holds shares of Rushil Decor Ltd. as of April 13, 2023 (record date) will be eligible for receiving Rights Entitlements (REs). 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 the company or you can sell them in the market.

You can check the announcement from the company here.

You will be eligible for Rights Entitlements (REs) if you’ve bought the shares on or before April 12, 2023. The ex-date is April 13, 2023.

Rights Issue Details
Issue Period May 2, 2023 - May 12, 2023
RE Trading Period May 2, 2023 - May 8, 2023
RE Symbol RUSHIL-RE1
Issue Price Rs. 162 per share
Ratio 1:3
Ex-date April 13, 2023
Record Date April 13, 2023
Tentative Date of Allotment for rights shares May 23, 2023
Tentative Date of Credit of rights shares May 26, 2023
Tentative Date of Listing for rights shares May 31, 2023

How to apply for Rushil Decor Ltd. Rights Issue?

Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using the below methods;

You can check the application process here.

You will need to enter your Demat account’s Beneficiary Owner ID which is a 16-digit number while applying for the rights issue.

The option to apply for rights shares through the RTAs portal is not available for this rights issue.

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.

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2

If I have the shares and I received some REs, can I just sell them for profit at market value assuming people want to buy it?

How exactly does this work?

This is my first time with REs.

Thank you for your help.

3

Hi @prk, yes, if you do not wish to apply for rights shares, you can sell the REs in the market just like stocks.

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4

If I bought RE’s from open market, then do I need to pay Rs. 162 premium and also the open market price at which i bought??

5

Yes, the amount you pay to purchase REs goes to the shareholder who is selling it, not the company. Also, this amount isn’t accounted for when you make the application for rights shares, you will have to play full premium, ie. Rs. 162.

6

Hi I have bought RE shares for Rushi and was not knowing that I have apply it online via ASBA facility. because this was first time.
Will I get the amount back or I loose that because those purchase stocks are not showing now?

7

If you fail to apply for the rights issue, the REs purchased will lapse once the issue closes and you will lose all the amount paid to purchase the REs.