if we want to apply for more than allocated REs (lets say i am eligible for 1000 RE shares and want to buy 2500 RE shares) ? do we need to buy excess 1500
RE shares from open market (REs) like zerodha/grow and then apply through either ASBA or RTAs portal for 2500 shares?
Hi @Jyothirmai_Gorsa , yes, if you want to apply for 2,500 shares, you’ll need to buy the remaining 1,500 REs from the secondary market. This will ensure you’re eligible for full allotment.
However, if you hold only 1,000 REs and apply for 2,500 shares, allotment will be guaranteed only for the 1,000 shares corresponding to your REs. The remaining 1,500 shares will be considered under the additional (or oversubscription) category and will be allotted only if there is excess subscription available after fulfilling all RE based entitlements.
Even after purchasing the remaining 1,500 shares through the secondary market (REs), is it guaranteed that I will be allotted all 2,500 shares, or does it depend? Is there a chance that I may not get allocated any shares, even if I apply for more by combining the additional REs purchased through the secondary market with my existing eligible REs?
Yes, if you apply for 2,500 shares and hold 2,500 REs in your demat account, including both the eligible and purchased ones, you will be allotted all 2,500 shares.
Allotment is guaranteed as long as the REs are in your account and the application is submitted correctly through ASBA within the issue window.