What are NCRPS Cumulative Non-Convertible Redeemable Preference Shares (NCRPS)?

Stocks
1

received an email :

Siyaram Silk Mills Ltd. is issuing 9% Cumulative Non-Convertible Redeemable Preference Shares (NCRPS) to its shareholders…

If you hold Siyaram Silk Mills shares as of the record date (August 22, 2026), you will receive:

  • Series I (maturity: 3 years from issuance): 4 NCRPS for every 1 equity share held*
  • Series II (maturity: 5 years from issuance): 3 NCRPS for every 1 equity share held*

In total, you will receive 7 fully paid-up NCRPS of face value ₹10 each for every equity share held. Both Series I and Series II carry a 9% per annum cumulative coupon.

The NCRPS will be credited to your demat account based on your entitlement and will show in your holdings once they are listed on the exchanges.

Can anyone please help me understand in layman terms what action i need to do. Do i need to apply for it like in case of buybacks in order to redeem it. Do i need to pay anything like in case of rights issue. Is any action required from my end ?

2

Since you held Siyaram Silk Mills shares on the record date (August 22, 2026), you are eligible to receive the preference shares mentioned in the communication.

You do not need to apply separately or make any payment for these shares. They will be credited to your demat account automatically, subject to the company’s allotment process.

As per the terms:

  • Series I: 4 preference shares for every 1 equity share held, redeemable after 3 years.
  • Series II: 3 preference shares for every 1 equity share held, redeemable after 5 years.
  • Both carry a 9% cumulative coupon on the ₹10 face value.

Once the preference shares are allotted and listed, they should reflect in your demat holdings. At this stage, there is no action required from your end.

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3

thank you, it helps alot.

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