Announcements

The Shriram Transport Finance in an attempt to raise Rs. 1,500 crore of funding has decided to release a rights issue. The price per share has been fixed at Rs. 570 and the rights issue is set to close on 30th July 2020. Here’s a little more about this.

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 Shriram Transport Finance Rights Issue, the proportion issued is 3:26. This means if you own 26 shares of SRTRANSFIN, you’re entitled to 3 of its shares in this rights entitlement.

Important dates to keep in mind for the rights issue
While the rights issue closes on 30th July, here are other dates to keep in mind.

16th July   –Listing of rights entitlement on the exchange
17th July- Rights entitlement credited to your Demat account
27th July  – Last day to trade your rights

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 27th July, 2020.