Announcements

Mahindra & Mahindra Financial Services (MMFSL) decided to release a rights issue which is set to open on 28th July and close by 11th August. The price for the same is set at Rs. 50 per share.

Understanding what a Rights Entitlement is
A company may resort to various means of raising capital while pursuing expansion goals, attempting to achieve a debt-free status or building new assets. One such means is a rights offer. This involves entitling existing shareholders to a specific number of rights as per the ratio set by the company.

Thus, rights entitlement offers existing shareholders the chance to buy more shares in the company at a discounted price over a specific period of time.

In the case of the MMFSL Rights Issue, the proportion issued is 1:1. This means if you own 1 or more share/s of MMFSL, you’re entitled to 1 of its shares in this rights entitlement.

Important dates to keep in mind for the rights issue
While the rights issue closes on 11th August 2020, here are other dates to keep in mind.

28th July -  Listing of rights entitlement on the exchange

29th July - Rights entitlement credited to your Demat account

10th August-  Last day to trade your rights

Please note that 8th & 9th August is a trading holiday. So, even though the rights entitlement will be suspended for trading on 10th August, the last day to sell your rights entitlement will be 7th August.  So, in case, you do not wish to subscribe to or forfeit your rights, it is advisable to sell these on the market on or before 7th August 2020.