Rights Issue - Arvind Fashions

Arvind Fashions will issue Right Entitlements (REs) to anyone who held its shares on March 18th, 2020. These REs will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the REs to apply for the rights shares of Arvind Fashions or you can sell them directly.

You can check the announcement from the company here.

Issue details
Ratio 62:91
Issue Price ₹ 100
Issue Period June 29th to July 17th
RE Trading Period June 29th to July 13th

How to apply for the Arvind Fashions rights issue?

Once you either receive the REs from the company or purchase it from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post.

You can verify your entitlement on the website of the Registrar & Transfer Agent. You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number. You can read this FAQ on the RTA’s website for details.

1 Like

Hi, 51 rights shares of AFL have been credited to my Zerodha account as part of my entitlement. I have also purchased 40 units of the same through open market @ 68/-. Can you please advise what i need to do so that these are credited to my account.

40 units will be credited to your account on T+2 basis, which you will have to use to apply for rights shares of Arvind Fashion after RE trading period ends on July 13.

Thanx Shubh. Please bear with me as i am new to this.

So how will the price adjustment be made? for the 51 entitlement + the 40 bought.

Also, if i understand, after July 13, i will have to apply for whatever RE units that are there in my kitty - right?

@mohitmehra can you.

Yes.

@mohitmehra - please advise on how will the price adjustment be made? for the 51 entitlement + the 40 bought. Basically i want to understand the significance of the LTP for this RE

You will have to apply for the 91 REs. The cost of the rights shares for you will be the application amount plus the amount paid to buy the REs.

On Console, you’ll find that the rights shares (when they are allotted to you) show up at the application price. And, the REs will be removed from your account since these are temporary. The LTP of the REs is not relevant for the calculation of your purchase price.