Since you’re an existing shareholder as of the record date, the company gives you a special right, called Rights Entitlement (RE), to buy additional shares at a set price.
Think of REs like coupons. You received them at no cost. These RE units are traded for a short period, and you can either sell them in the market for Rs. 6.4 each, or use them to buy new shares at the company’s offered price.
Once you apply for new shares, you cannot sell them off in market.
It’s important to note that these RE units will stop trading soon and will disappear from your demat account if you don’t use or sell them in time.