Everything You Need to Know About the Transwarranty Finance Rights Issue

Transwarranty Finance Limited (TFL) will issue Right Entitlements (REs) to anyone who holds its shares as of November 4, 2022 (record date). 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 Transwarreanty Finance or you can sell them in the market. You can check the announcement from the company here.

You will be eligible to receive Rights Entitlements (REs) if you have bought the shares on or before November 3, 2022. The ex-date is November 4, 2022.

Issue Details
Ex-Date November 4, 2022
Record Date November 4, 2022
RE Symbol TFL-RE
Ratio 1:1
Issue Price ₹ 10
Issue Period November 15, 2022 to November 29, 2022
RE Trading Period November 15, 2022 to November 23, 2022
Tentative Date of Allotment December 7, 2022
Tentative Date of Listing December 14, 2022

This is a partly-paid issue, meaning at the time of application you only have to make part payment.

Amount payable per equity share Face Value Premium Total
On Application 3 NIL 3
One or more additional calls as may be decided by the company 7 NIL 7
Total 10 NIL 10

If you continue holding partly-paid shares of Transwarranty Finance when the company makes a call for the balance payment, you will be liable to pay the balance sum. Alternatively, if you sell the partly-paid shares, the buyer will be liable to pay the sum.

How to apply for Transwarranty Finance 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 Netbanking ASBA or offline by submitting a Application Form to the nearest branch of SCSB (Self Certified Syndicate Bank) . You can check the process in this post .

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.

If you face any difficulties applying for the rights issue, you can get in touch with the RTA at [email protected] or 022- 4918 6200

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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