Share India Securities Limited (SHAREINDIA) has announced a rights issue of 6.38 lakh equity shares along with 1.08 crore detachable warrants aggregating up to Rs. 804 crores. The rights issue opens for subscription on March 9, 2023, and will close on March 17, 2023.
Anyone who holds shares of Share India Securities Limited as of February 28, 2023 (record date) will be eligible for receiving Rights Entitlements (REs) along with Detachable Warrants. You can check the announcement from the company here.
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 KHFM Hospitality And Facility Management Services Limited or sell them in the market.
You will be eligible for Rights Entitlements (REs) if you have bought the shares on or before February 27, 2023. The ex-date is February 28, 2023.
Rights Issue Details
| Issue Period | March 9, 2023 - March 17, 2023 |
| RE Trading Period | March 9, 2023 - March 13, 2023 |
| RE Symbol | SHARE-RE |
| Issue Price | Rs. 700 for rights shares and Rs. 700 for warrants |
| Ratio | 1 RE and 17 detachable warrants for every 50 shares held |
| Ex-date | February 28, 2023 |
| Record Date | February 28, 2023 |
| Tentative Date of Credit | March 31, 2023 |
| Tentative Date of Listing | April 4, 2023 |
Payment Schedule for Rights Equity Shares
| Face Value | Premium | Total | |
|---|---|---|---|
| On Application | 10 | 690 | 700 |
Payment Schedule for Detachable Warrants
| Schedule | Total |
|---|---|
| On Application | 175 |
| On Warrant Exercise | 525 |
| Total | 700 |
Note: At the time of application, for every right share you apply, you will have to apply for 17 warrants. The application for subscription of rights shares is liable to be rejected in case of part payment
Tenure of the Warrants
18 months from the date of allotment of the Warrants, i.e. Warrants which are not tendered to be converted into Equity Shares at the completion of the Warrant Exercise Period (18 months), shall lapse and the relevant holder/s of such Warrants shall not be entitled to allotment of the Equity Shares against such Warrants.
Warrant Exercise Period
A period that commences on the completion of the 1st month from the date of allotment of the Warrants and shall continue up to the completion of the 18th month from the date of allotment of the Warrants.
How to exercise warrants
When you wish to exercise your Warrants, you will have to fill out the Warrant Exercise Application Form and send it to the company, along with a cheque/demand draft/pay order favouring the company for the requisite amount along with a photocopy of the delivery instruction, or counterfoil of the delivery instruction, duly acknowledged by the Depository Participant (“DP”), in favour of the Special Depository Account to the Registrar to the Issue. You can check the off-market transfer process here.
Before you send the Warrants Exercise Application Form along with other required documents you will have to transfer these Warrants to a Special Depositary Account opened by the RTA. The details of this Demat account along with other information are available here.
If you need any help with the transfer process, you can also reach out to the RTA at +91 6263 8200 or [email protected].
How to apply for Share India Securities Limited 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;
- Online via Netbanking ASBA
- Offline by submitting the Application Form to the nearest branch of SCSB (Self Certified Syndicate Bank)
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.