What happen to my RE’s if I dont sell them
Hi Rohit,
What does RIL - RE - BE reflecting in demat account means ? I have 15 shares of Reliance, can I purchase any additional share of Reliance under RIL - RE - BE ?
Once the rights shares are listed, it’ll start reflecting in your holdings. The tentative listing date is June 12th
The REs will get lapsed and will be removed from your holdings
It means you’re eligible to apply for the rights (where you can purchase additional partly paid shares of Reliance). You can also sell these REs if you don’t want to apply.
@mohitmehra: I have 15 RIL shares and I’ve applied for 5 more apart from my eligible 1 entitlement. In this case, will I actually be considered for additional shares ? I’ve paid the initial amount too in Karvy. If not eligible for additional 5, they will refund to my registered bank account right?
No. of shares Entitled = 5.
There is text box saying - “Total No. of shares applied for” [ No. of shares will be as per your entitlement and any additional shares that you intend to invest]
Here, can I put 10 ? If I put 10, system calculates application price for 10 shares.
What does it means ? Will I get 10 shares at discounted price ?
The RTA can consider you for additional allotment depending upon the issue subscription. The amount you’ve paid is kept in an escrow account maintained by Karvy and will be refunded if the allotment is not made (This is how IPO subscriptions would also work before ASBA).
Hi Mohit, I am also sailing in the same boat. I got 1 RIL-RE-BE share from the 15 Reliance share I had earlier. Now, if I buy 5 more of RIL-RE-BE at Rs 150 then what should I do in RTA website. Will they automatically tell me to pay for 6 shares?
Select the appropriate option on the RTA’s site. You’ll have to place a purchase order twice:
For the REs received to your demat as a shareholder,you should select the red boxes.
For the REs that you purchased ,select the green boxes and proceed
P.S: There’s an update, we’re informed by the RTA that if the shareholder has received credit of REs and has also bought REs in the secondary markets, then the investor will have to select the shareholder option and apply for the additional Rights shares.
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You will be entitled to receive 5 shares. If you apply for more, the RTA may consider your application for allotment (depending upon the issue subscription). The additional amount you’ve paid will be refunded to you in case the additional allotment is not made.
@VenuMadhav @mohitmehra I have a similar question regarding the purchase of RIL rights. Say if I purchase 10 rights in addition to the rights I got automatically as I was the shareholder on record date then do I need to select the second checkbox also as per the screenshot (shown above) i.e.
“I am renouncee and hold rights entitlement in valid demat account and undertake to hold RE till issue closing date”?
I’ve responded above with a screenshot.
Thanks @VenuMadhav for your quick response. I saw that post but I got confused with the terminology. What does that renouncee signifies here? I am not renouncing my rights instead I wish to opt for more rights which I have brought.
If you’re buying REs from the secondary market, you’re buying it from someone who is renouncing his right. The seller would be the renouncer and the buyer would be renouncee.
As I said earlier, you have to apply and pay twice - one for the allotment that happened to you by virtue of you being a shareholder and another for the REs you bought from the secondary market.
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Thanks for the clarification. Understood!!
How can NRIs buy the REs, since they cannot pay through kfintech?
What Scrip should i search in Kite to buy RE?
NRIs will have to do this offline by downloading the Application form from here
Reference:
This is from page 282 of the Letter of Offer