Announcements

L&T Finance Holdings has credited existing shareholders’ Demat accounts with REs (Rights Entitlements) after it announced a Rights Issue.

What does this mean?
A company announces a Rights Issue to invite existing shareholders to buy more shares, usually at a discounted price. These shares are known as Rights Shares.

After the Rights Issue is announced, the company then credits its existing shareholders’ Demat Accounts with REs (Rights Entitlements).

These REs are not the Right Shares but the benefit given to existing shareholders to apply for the Right Shares. If shareholders do not wish to apply for these Rights Shares, they can even trade these REs in the market until a particular date.

To learn more about rights, click here.

What does this mean for L&T Finance Holdings shareholders?
Existing shareholders of L&T Finance Holdings (as on record date 22nd Jan’21) have the following two options -

1. They can use their REs to apply for more shares of L&T Finance Holdings (in proportion to their existing shares - 17 for every 74 shares held) at a discounted price of Rs.65.

2. If they do not wish to apply for more shares, they can even trade their REs in the market.

For the above corporate action keep these dates in mind

Last trading day of RE  - 10th February 2021.
If you do not wish to apply for the rights shares, you can trade your REs in the market on or before this date.
Last date to apply for Right Shares - 15th February 2021.
If you’re interested in applying for the right shares, you can apply on or before this date, after which the RE ceases to exist.

How To Apply For Rights Shares?
There are 3 ways to apply -
1. Online through ASBA (Applications Supported by Blocked Amount) if your bank supports it just like you do for an IPO. Most large banks including Axis, HDFC, ICICI, SBI, Kotak support this method.
https://web.linkintime.co.in/RightIssues/index.html

2. Online through the RTA (Registrar and Transfer Agent) website 

3) Offline by filling the Composite Application Form (CAF) received in your courier from the company’s RTA and then submitting it at a Self Certified Syndicate Banks (SCSBs) branch.

Read more about this RE by clicking here.