Everything you need to know about the Varanium Cloud Limited Rights Issue

Varanium Cloud Limited (CLOUD) has announced a rights issue of 4,020,574 equity shares aggregating up to Rs. 49.45 crores. The rights issue opens for subscription on September 28, 2023, and closes on October 4, 2023.

Anyone who holds shares of Varanium Cloud Limited as of September 15, 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 receiving Rights Entitlements (REs) if you’ve bought the shares on or before September 13, 2023. The ex-date is September 14, 2023.

Rights issue details

Issue Period September 28, 2023 - October 4, 2023
RE Trading Period September 28, 2023 - September 29, 2023
RE Symbol CLOUD-RE
Issue Price Rs. 123 per share (Rs. 61.5 on application)
Ratio 3:26
EX-date September 14, 2023
Record Date September 15, 2023
Tentative Date of Allotment of rights shares October 06, 2023
Tentative Date of Credit of rights shares October 10, 2023
Tentative Date of Listing of rights shares October 12, 2023

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 2.50 59 61.5
One or more additional calls as may be decided by the company 2.50 59 61.5
Total 5 118 123

How to apply for Varanium Cloud 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;

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 .

I have Varanium shares in multiple of 1000s and received REs in the multiples of 100. But it is not allowing to sell REs and we need them in multiple to 1000s to sell.

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Really need more clarity regarding this. Nor can I sell my 100 RE nor can I apply for it without doing in multiples of 1000. The ratio of 1:10 seems like a way to cut float at the expense of retail shareholders. How did SEBI even allow this?
Even if I apply for 1000 shares, and I’m allotted, say 700 shares, my holding becomes 1700. I can only trade on 1000 shares. 700 remains blocked!!!

Varinium cloud RE has not yet been credited to the account. Has anyone got the allotment?

The dates for allotment and credit of shares are tentative and actual dates can differ.

Same for me also. Tentative date was 10th.

I have 1000 shares of Cloud RE but am not able to sell them as the lot size has changed to 1200. What should I do now?

You can create a ticket here so our team can assist you with it.

Hi,

I created ticket but was asked to approach RTA.

I approached RTA but no revert on the same since week.

Can someone help, please? What shall I do to sell partly paid shares?