Hi, I have 25 RE in my Demat account. If I want to apply for additional 25 shares, should i first buy 25 more RE’s or Can I directly apply for 50 in netbanking?
Hi All,
I got an allotment of 25 RE. Also, bought additional 1000 with 7.4 rs. I have three queries here:
- For 25 - do I need to pay 22 each share and buy it using ASBA?
- For 1000 which I bought for 7.4 each share, do I need to pay again 22 for each share or will it be 22-7.4=14.6? Also, if I am not buying it, will my invested amount be zero?
- Can you please help me with the process how to do it in ASBA?
Any idea on CAF no ? while applying for right issue through HDFC bank there is an ask for CAF no
I’m not an expert but I’m having an opinion that you have to pay additional 22/ per share for buying right issue in ASBA. Equal amount will be blocked by bank and partial amount would be released if you get partial allotment.(just like IPO block and unblock process).But hear client has to apply in ASBA by their own and broker doesn’t have anything to do in this matter what I suppose.
I hv additional question to Zerodha
In case of applying additional right issue should one have to buy RE from market (currently 7+/)
Or if one apply directly in ASBA???pls adv.
Also suggest if additional buying is worthy or not as currently share price is 29/.
And one buys RE 7+22(right issue price) =29(same as mkt price)
You can apply for any number of shares, irrespective of the REs you hold. However, the allotment will be guaranteed only to the extent of REs held. For remaining shares, the allotment will be done on lottery basis and if you don’t get the allotment, amount will be refund.
If you need guaranteed allotment, then you will need to buy additional shares.
Yes.
You will have to pay Rs. 22. The amount you pay for purchasing REs isn’t accounted while you apply for rights shares as this amount goes to the shareholder who sold the REs.
You can check the process here: How do I apply for the rights issue of Piramal Enterprises? - #3 by Bhuvan
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As the applications are now submitted online, CAF number isn’t needed. You can keep that field blank.
Okay. So If I buy more REs then I will get a guaranteed allotment but the share price in this case will not be 22/share but will be 22(issue price) + 7(RE price) = 29/share. Correct me if wrong
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I’m going to apply for the South Indian Bank rights issue using my HDFC Bank account. While applying, it’s asking for the CAF number & Facilitator Code, but I’m unable to find it. Could you kindly help me check this?
Please help ASAP.
CAF number:
Facilitator Code:
Depository:
DP Name:
DP Id:
Beneficiary A/C no:
Right.
CAF number isn’t supposed to be mandatory now since there are no physical rights composite application forms. If the bank hasn’t removed it from their portal, you can enter any dummy number (For e.g.your PAN). Please reach out to your bank for making the required changes on their portal. Some banks have already grey-ed out this field.
Source - Rights Issues and Rights Entitlements (RE) - FAQs
demat details - What are DP name, DP ID, BO ID and demat ID?
You can apply for any number of shares, irrespective of the REs you hold. However, the allotment will be guaranteed only to the extent of REs held. For remaining shares, the allotment will be done on lottery basis and if you don’t get the allotment, amount will be refund.
If you need guaranteed allotment, then you will need to buy additional shares.
This is up to you. You should do what you think is best.
Hi @ShubhS9
While applying for SIB rights issue via net banking ASBA, it is asking for Category and the options are “Retail” and “Shareholder of the issuing company”.
What should i choose here if i have only RE shares in my demat account and not the SIB equity shares?
Note: I sold my SIB equity shares once i received my RE shares in demat account and i also bought addotional RE shares from market. So now confused to choose whether Shareholder of the issuing company option or Retail option.
No.of RE shares in my demat account=107
No.of SIB equity shares=0
It would be really helpful if someone could answer this.
I think you should apply with fresh holder.As per my assumption SBI will reconsider the right shares issued against holding(Guaranteed)and RE bought additionally (depending on Allotment ratio).
Ideally when they will recheck your already holding they will find that you have already sold your holdings then they will allot as per acceptance ration wise Allotment.
This is what common sense says rest zerodha team will give you exact answer
you are suppose to apply in shareholder category as you had share /s on eod record date .
Being holder of 50 South Indian Bank I received 12 shares RE,
But purchased 112 more at average of 7/-,so now it’s reflecting 124 RE on my holdings.
Would like to know what will happen on 20th March i.e will I get allocation of 124 shares,if Yes then will I have to pay remaining amount of 2728/- and how?
Or if I sell 124 REs including 12 of my RE what will happen on issue closing day?
Kindly guide here.
When you buy the REs, you get the option to buy additional shares of the company at 22 per share. Consider this a discount for existing shareholders. You must apply for or sell these REs before they expire or you lose the premium you paid to acquire them. The REs are temporary securities that will expire if not renounced or exercised once the trading window closes.
Let’s say you applied for the REs, the corresponding number of REs held will be extinguished, and the rights shares you applied for will be credited to your demat account on the allotment date.
Hi @karthikvasagan , the rights issue application can only be made through Netbanking ASBA or by submitting an offline application to the branch of Self-Certified Syndicate Bank (SCSB). We’ve explained how to apply for a rights issue here.
Hi @Rahul1 , could you please check now? I tried looking up this, and it is available. Once you log in to net banking, navigate to e-services > ASBA and IPO/ Rights. You will find the South Indian Bank Rights issue there.
The CAF number is no longer required because applications are now submitted online. You can leave that field blank.