What is composite application form (caf), part- a form of application by eligible equity shareholders & part b- form of renunciation?

Hi,
I own 71 nos of HCC shares; Today I received Composite Application Form(CAF) - containing Form of application by eligible Equity shareholders Form & Form of RENUNCIATION form by speedpost from Link Intime India Pvt ltd(Unit- HCC limited-Rights issue), Mumbai.

  1. What is this form?

  2. Should I fill it and send it to the same address?

  3. Why I should sign Form of RENUNCIATION? Should I??

  4. How to fill this form?

  5. Is it mandatory?

@nithin
@Bhuvan
@tamiltrade

A typical right issue form will have many options like (1) it can be renounced /sell (2) it can be partly applied and partly renounced (2) you can request for split forms if you want to renounce in favor of many persons .
if you are applying at your own ,you must not fill renunciation part or split form. you have to hand it over to a collection center in your town along with a cheque for total number of share applied ( you can apply for additional shares)and if not possible , because there is no in your town or time and traffic issue you can courier the same to main collection centre along with pan India payable cheque.

  1. This form is for rights issue application. When companies want additional capital, they will get it from existing shareholders by offering shares at a lower price than the market price, roughly. Best place to know about rights issue is Varsity.

  2. Yes. You should send it to the registrar or submit it to the local collection center near your area.

2.1 You do not need to fill and submit physical applications for rights issue. You can submit online applications, if you have bank account (it can be in anyone’s name), in Canara Bank or Bank of Baroda, you can apply online. You can check here for CanaraBank and here for BankofBaroda. Video is in Tamil, but you can get the procedure by watching it, if in case, you do not know tamil.

  1. If you want to apply for yourself, you do not need to fill renunciation form.

  2. Just fill Part-A of the form with your details. If you do not want to apply online and want to apply using physical form, there is one more video on how to fill rights issue application, which is also in Tamil. How to fill rights issue application form?

  3. It is not mandatory. There are three reasons, AFAIK, makes me to apply. 1. They offer me shares at lower price. in your case almost 15% discount. 2. If I’m eligible for 20 rights shares, I can apply additional shares. Condition is the purchase value should be less than 2Lacs. In your case, even though your are eligible for 2 rights shares, you can apply, say for 20 shares. They will allot you 2 shares for sure and more, if they have. 3. Share price already adjusted for this rights issue as on Ex-Date. So, I do not want to lose my rights. So, I’ll apply.

Hope it clarifies!