Everything You Need to Know About Vikas Lifecare Rights Issue

Vikas Lifecare Ltd. will issue Right Entitlements (RE’s) to anyone who holds its shares as of May 21, 2021 (record date). These RE’s will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the RE’s to apply for the rights shares of Vikas Lifecare or you can sell them in the market. You can check the announcement from the company here.

Issue Details
Ex-Date May 20, 2021
Record Date May 21, 2021
Ratio 2:5
Issue Price ₹ 1.85
Issue Period May 27, 2021 to June 10, 2021
RE Trading Period May 27, 2021 to June 4, 2021
Tentative Date of Allotment June 22, 2021
Tentative Date of Listing June 28, 2021

How to apply for Vikas Lifecare Rights Issue?

Once you either receive the RE’s from the company or purchase it from the market, you can apply for the rights shares using Netbanking ASBA. You can check the process in this post.

You can also apply for rights shares through the website of the Registrar and Transfer agent. The website might not be fully live until the issue opens for the subscription.

You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying through Netbanking ASBA.

If you face any difficulties applying for rights issue, you can get in touch with the RTA at [email protected] or at +91 11 4254 1972/1864/1953.

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How to buy right issue share for Vikaslife

The process to apply for rights shares of Vikas Lifecare has been explained above.

Thanks for the details

When will be the link open of R-wap option to apply for RE?

Hi

Pls can anyone tell whether one can apply for right issue of Vikas life care through Andhra bank

Or pls guide how we can know whether this bank allow for this application or not

The RTA has provided the list of banks through which payment can be made here. Andhra Bank isn’t part of this list.

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@ShubhS9 can you please tell me if R-WAP link is working? It is giving error to me.

Also I am not able to apply through SBI net banking, he equity/rights section of SBI doesn’t have option of VikasLife

What is the other way to apply?

You can reach out to the RTA at [email protected] or at +91 -11 4254 1972/1864/1953.

SBI must have not made Vikas Lifecare rights issue available on their portal.

Alternatively, you can also apply offline by by submitting the Application Form or plain paper application to the Designated Branch of the SCSB (Self Certificate Syndicate Bank).

Can anyone help answering these?

  1. Suppose RE is trading at Rs 1, so if I sell it then buyer just pays only Rs 1 or 1 + 1.85 (the extra 1.85 the price declared by Vikaslife when applying at RTA website)?
  2. Suppose I am eligible for 1000 RE and i renounce my rights by selling RE for Rs 1. What will be my buy price when calculating profit - zero as buy price or something else?
  3. Suppose RE is trading at Rs 1, then instead of claiming my RE for Rs 1.85 as fixed by Vikaslife I buy RE from market at Rs 1 and not claim from my RE. That’s wise or even allowed correct?
  4. Suppose I already have 2000 shares bought at Rs 3 and I get 1000 RE for Rs 1. What will be my average price for 3000 shares after adjusting when RE closes and gets credited?
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The person applying for rights shares will have to pay Rs. 1.85 while making the application. The amount paid towards purchasing RE’s isn’t counted while making application.

The RE’s will be allotted to you at no cost.

The RE’s are temporary securities, once the rights issue window closes the RE’s will lapse, and if you haven’t applied for rights shares, you’ll lose the entire amount paid to purchase RE’s.

As explained above, the RE’s are temporary securities and you’ll have to use the RE’s to apply for rights shares. The amount paid towards purchasing RE’s isn’t counted towards application amount for rights shares.

Thanks, one last question based on your response to first.

**

The person applying for rights shares will have to pay Rs. 1.85 while making the application. The amount paid towards purchasing RE’s it counted while making application.

**

So that means if RE is trading at Rs 2, then the buyer (purchased RE from market at Rs 2) pays nothing to company while applying for RE (because his buy price is already more than Rs 1.85)?

Will have to pay Rs. 1.85 per share while making the application. The amount paid towards purchasing RE’s isn’t counted towards application amount.

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suppose I got 100 shares of Vlife re. I had applied for them through the RTA website on 31 May. Afterwards, I sold 50 RE shares then what will happen in this case

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The RTA will do demat check for number of RE’s you hold and do the allotment accordingly. You’ll receive guaranteed allotment for number of RE’s you hold. For remaining shares, if you don’t receive the allotment, amount will be refunded.

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when this RTA will check no. of RE shares I hold. whether after payment for those RE shares whether those RE shares will get blocked? what will be the mechanism? @ShubhS9

The check will happen during the allotment, which happens after the issue closes.

RE’s won’t be blocked after payment, ie. after making the application for rights shares. Until the RE’s trading period is open, one can sell as well. Once the RE trading period is over, you won’t be able to sell.

The RE’s are temporary securities, once the issue closes, RE’s will cease to exist and will be removed from your Demat account.

suppose the client had done the payment of 100 shares after that he sold 50 shares what will happen in such a case.

How to apply for Vikas Life Care Right Issue

The process has been explained above. Please check out the main post :slightly_smiling_face: