The South Indian Bank Limited (SOUTHBANK) has announced a rights issue of 5,231,85,254 equity shares aggregating up to Rs. 1,151.01 crores. The rights issue opens for subscription on March 06, 2024 and closes on March 20, 2024.
Anyone who holds shares of South Indian Bank Limited. as of February 27, 2024 (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’ll be eligible to receive Rights Entitlements (REs) if you’ve purchased the shares on or before February 26, 2024, with the ex-date set for February 27, 2024. On the ex-date, Kite charts are adjusted for corporate actions such as bonuses, stock splits, rights issues, spin-offs, and extraordinary dividends. You can find more details here.
Rights issue details
| Issue Period | March 06, 2024 - March 20, 2024 |
|---|---|
| RE Trading Period | March 06, 2024 - March 14, 2024 |
| RE Symbol | SOUTH-RE-BE |
| Issue Price | Rs. 22 per share |
| Ratio | 1:4 |
| EX-date | February 27, 2024 |
| Record Date | February 27, 2024 |
| Tentative Date of Allotment for rights shares | April 05, 2024 |
| Tentative Date of Credit of rights shares | April 09, 2024 |
| Tentative Date of Listing for rights shares | April 12, 2024 |
How to apply for The South Indian Bank 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 FAQs on Rights Issue and Rights Entitlements here.