Good news!
After several follow ups with the RTA & RIL CS, I have heard back from RTA, they are saying to apply using the first option with the addition number of the RE’s purchased in the secondary market. They will be accepted and shares according to the number of REs purchased will allocated to us. This will get appended to the initial RE we have paid for. I have not yet executed this, so not sure if it works completely. Just updating the information I have received, this corroborates the verbal information you have highlighted earlier. Let me know if you have any thoughts!
Hi @mohitmehra ,
Thanks for your reply. I want to buy those shares and keep them for long term. I have already paid for it and it worked. Now I am wondering what all I need to do like where do I have to submit this application( https://karisma.kfintech.com/files/RELIANCE_INDUSTRIES_LIMITED-Application_Form.pdf ).
The thing you gave me worked and I paid for the shares.
Thanks.
Regards
Shubhransh
Thanks for this wonderful information. I have following doubts. Could you please clarify ?
I hold 43 shares and thus eligible for 2 shares under this issue. Heard that I can apply for more. If someone does not file, I can get them. So I filed for 7 shares @314.25 each from https://rights.kfintech.com/ website.
Afterwards came to know that I will have to purchase 5 extra RIL-RE-BE shares those are currently trading @ 201.5Rs./share. Does this mean that those 5 extra shares would cost me 201.5 + 1250 = 1452.5 Rs. ? If yes, what will happen if I won’t purchase those 5 extra RIL-RE-BE shares ? Can I get 1571.25Rs. back towards those unpurchased 5 extra RIL-RE-BE shares ?
Like @Arjun_Narayanan mentioned, you may either buy the additional REs to ensure you get the rights allotment or you may ignore buying it and take your chances with the lottery for these 5 shares.
In case you are not allotted the additional shares completely or in part, the amount you’ve paid @ Rs. 314.25 per share will be refunded to your bank account.
If you’re purchasing the 5 REs (at say Rs. 200 per RE) then your cost price of the partly paid rights shares becomes Rs. 514.25 (i.e. 314.25 + 200).
P.S. Note that Rs. 1257 is the full value of the rights shares. However, the issue is partly paid in nature. Only 25% of Rs. 1257 (+ any amount paid to aquire the REs) can be considered to be your cost of acquisition of these shares for now.
even i am getting this error on selecting renouncee. I think they have not reconciled any renouncee shares till now. This seems to be one of the really bad and unclear execution of rights issue. Just making everyone more anxious.
You’re not an eligible shareholder since the last date you could purchase the shares cum rights (with the rights entitlement benefit) was May 12th. The shares required to be delivered to your demat account by May 14th (record date).
Since you’re not an eligible shareholder, but still want to apply for the partly paid-up shares, you can buy the REs from the secondary market and then apply.
@mohitmehra@VenuMadhav
Here we need to make a down payment of 314.25/ RE share. I believe, after allocation these partly paid shares will be traded separately. Let’s say in trading market, if some one buys these partly paid shares for rs. 250.
Will the new owner of the partly paid share has the rights to pay for the remaining part and get the full share ?
At present, we need to pay remaining 25% in May’21 and 50% in Dec’21. Since, he bought it for a lesser price how much will he have to pay then ?
The RTA is asking such investors to apply for the REs together (all 10 rights) by selecting the “Shareholder” option. You’ll see 6 REs as your shareholder eligibility but the RTA will check your final RE holdings before allotment (which will include REs purchased).
P.S. Posting for everyone’s benefit: In case someone has already applied for some REs and then purchased more, RIL has emailed us confirmation today that these incremental applications will also be considered by the RTA.
The intermediary accepting the bid (in this case HDFC bank) should allow the applicant to withdraw their bid. The RTA allows withdrawal by taking an email request during the issue period. Perhaps, your friend could reach out to HDFC bank to check if they’re taking email requests to cancel the order.
(A possible reason could be that the bank is facing issues while sending orders to the exchange where they are submitting bids. Could you check if you’re able to place bids after 10 am tomorrow? However, best to check this with Axis bank.)