Reliance Rights Issue & Dematerialized Rights Entitlement Trading

General
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You can follow the updates on Reliance’s website and the exchanges - NSE or BSE.

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Hi Mohit,

There looks to be a variation in what is mention here and what has been pointed out in website.

https://support.zerodha.com/category/trading-and-markets/corporate-actions/articles/reliance-rights-issue

Note : In case you have pledged your shares for margin and the shares are not in your demat account, you will need to unpledge your holdings from Console. All unpledge requests received before 2:00 pm shall be processed the same day and stocks will be credited to your demat account on T+1 day. Failure to unpledge stocks on time may render you ineligible for the respective corporate action.

I do hold 500 reliance shares pledged as of today haven’t unpledged till 13th 8PM will I be eligible for Rights issue directly or by the broker ?

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Hi Mohit can I sell the reliance shares today and still get the rights issue profit

26

Hi Rajesh, the article had not been updated. Thanks for pointing it out.

27

If you had the shares in your holdings on the record date, even if sell now you’ll still be eligible to apply for the rights.

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I CANNOT FIND RELIANCE RIGHT ISSUE ON SBI & ICICI BANK
IPO(EQUITY) nor IPO(DEBT)

HOW CAN I APPLY

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The issue period is from May 20th to June 3rd. The RTA will send email and sms communication to eligible shareholders with details on the processes available to apply through the RTA’s channel or netbanking ASBA.

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Since it’s partly paid up shares, can I sell them immediately after buying? Also how to sell the rights entitlement?

31

Shareholders with less than 15 shares will be given preferential allotment if they apply for one rights share. Excerpt from the announcement on fractional entitlement :

If the shareholding of any Eligible Equity Shareholder is less than 15 equity shares or is not in
the multiple of 15 equity shares, the fractional entitlement of such Eligible Equity Shareholder shall be ignored for the computation of the rights entitlement.

However, the Eligible Equity Shareholders whose fractional entitlements are being ignored, will be given preferential consideration for the allotment of 1 (one) additional Rights Equity Share each if they apply for additional Rights Equity Shares over and above their rights entitlement, if any, subject to
availability of additional Rights Equity Shares in this Rights Issue.

I am kind of confused with this part. I have 5 shares bought 2 months back, am I eligible for the rights issue ?

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No. You need minimum 15 shares.

33

Thanks for updating. Can you please explain the rights issue process for pledged shares( The process is not explained anywhere). Will client get email regarding RE or do we have to call customer care to enable it ?

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Normally, should I expect the stock to increase or decrease in the short range due to rights issue? Or no effect at all?

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The shares will be listed soon after the rights issue closes. Since these are party paid up shares, the shares will be listed separately (like tatasteel-pp (BSE) or tatasteel-E1 (NSE) shares which trade separately from the fully paid ordinary shares).

You can sell the REs once they are listed on the exchanges like you normally sell shares from your holdings. Although the date for RE listing is not out yet, it should be same as the issue opening date - May 20th.

1 Like
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Although you’re not eligible to be allotted the shares, the RTA will still mark you as eligible for 1 share. You may or may not be allotted the shares, depending upon the overall subscription.

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You don’t have to call/raise a ticket to give an instruction to Zerodha to this effect. The REs will be credited to your demat account by issue open date - May 20th.

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Please check this:

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In the Partly paid up shares or fractional shares :::: how dividends are paid/received ? Or how the other corporate actions are adjusted ?

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Assume Reliance has announced a dividend of 400%. This means you will receive 400% of the paid up value of your shares as dividend. If you hold the ordinary shares of paid up value Rs. 10 then you receive Rs. 40 as dividend. Similarly, if you hold the partly paid up shares of Rs. 2.50, you receive Rs. 10 as dividend.

1 Like
41

Hi

Today got an email from CDSL.

5 units Credit of RELIANCE INDUSTRIES LTD#RIGHTS ENTITLEMENTS FOR PARTLY PAID-UP EQ OF FV RS.10/- & PAID-UP RS.2.50/-

Can someone explain what is this? Also what should be done next?

1 Like
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I also received a similar email. Not sure what needs to be done