Announcements

Urja Global Limited credited existing shareholders’ Demat accounts with REs (Rights Entitlements) after it announced a Rights Issue on 11th Jan 2021.

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 Urja Global Limited shareholders?
Existing shareholders of Urja Global Limited company (as on record date 15th Jan’21) have three options –
1) They can use their REs to apply for more shares of Urja Global Limited (in proportion to their existing shares – 7 for every 71 shares held) at a price of Rs. 5 per share.
2) If they do not wish to apply for more shares, they can even trade their REs in the market.
3) Take no action and forfeit their rights, bringing the value of the REs to zero.

What dates should one keep in mind?
Last date to apply: 10th February 2021
If you’re interested in applying for the right shares, you can apply on or before this date.
Last trading date for RE  – 5th 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.

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.

2) Online through the RTA (Registrar and Transfer Agent) website  https://rights.integratedindia.in/

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.

L&TFH | 533519 | INE498L01015

L&T Finance Holdings will issue rights to its existing shareholders. This means if you hold shares of this company as on record date, you can apply for more shares of the same company (in proportion to your existing shares – 17 for every 74 shares held) at a discounted price of Rs.65.

The record date for this issue is 22nd January 2021 and the subscription start date- 1st February 2021.

Changes in F&O contract
As a result of this corporate action, there will also be changes in the L&T Finance Holdings F&O contracts in the same ratio of 17:74 w.e.f from 21st January 2021.

What is changing?
Strike Price
Market Lot

To know more click- https://www1.nseindia.com/content/circulars/FAOP47052.pdf

The Government of India has announced a 10% stake sale in SAIL (Steel Authority of India Limited) via an Offer-for-Sale and here are some details:

Floor price: Rs. 64 per equity share

Application date for retail investors: Friday, 15th January 2021

Click here to get more details on this offer

What is Offer-for-sale (OFS)?
OFS is an investment opportunity for all types of investors to own shares of a listed company, where a promoter wants to sell off part of their investment. This is conducted on a specific date, via a process that is separate from the normal market trading process.

How is OFS different from normal market trading?
1. Unlike normal market trading, OFS is based on a bidding platform provided by the Exchange.
2. All orders placed must be above the base price called floor price set up by the company.
3. Investors can bid for even a single share and can also place multiple order bids.
4. All shares allotted to investors via an OFS are settled on T+1 day 

For more information on OFS, click here

Why choose OFS over buying shares directly through the exchange?
The floor price set by a company is usually lower than the current market price at which the stock is being traded. Thus, buying shares via an OFS gives an investor the opportunity to purchase shares of that company at a lower price. However, since this a bidding-based system, there may be some occasions where the OFS allotment price crosses the current market price of the company.

How to apply for a OFS on Upstox?
Applying for an OFS is quick and easy. You can do this via our Call-N-Trade facility. 

All you need to do is call us on 022-61309998 / 022-71309998 and place your order bids by quoting the quantity and price at which you wish to buy the shares. Please make sure you have sufficient funds in your account, to enable your order bid to be accepted by Upstox. In order to successfully place your order, you need to have your Call-N-Trade TPIN handy. You can find your T-PIN find here. 

Note: For SAIL, the floor price is Rs. 64 per share so remember to place your bids at or above this price. The cut-off price as determined on the first day of the bidding (14th Jan 2021) for the general category is Rs. 65.65 per equity share. 

A new index called the Nifty Financial Services is now available for derivatives trading from today, 11th January 2021.

Like Nifty and Nifty Bank index contracts on the Upstox platform, we will also have the Nifty Financial Services index for derivatives trading from today, 11th January 2021. Read on, to know more –

What is an index?
A stock index is a tool that measures the overall trend in the stock market, and its value is calculated based on the stock prices of a select group of companies.

What is the Nifty Financial Services Index?
The Nifty Financial Services Index comprises 20 stocks, listed on the National Stock Exchange (NSE), it measures the behavior and performance of the Indian financial sector that includes banks, financial institutions, housing finance, insurance companies, and other financial services companies. To know more about this index, click here.

How does this benefit F&O traders?

More options to trade-in: Currently, NSE offers index derivatives only on two equity indices – The Nifty50 and the Nifty Bank. After approval from SEBI to launch derivatives on the Nifty Financial Services Index, F&O traders have a new index to trade-in.

More volatility: Up until now, the Exchange only allowed monthly contracts in futures and allowed weekly and monthly contracts in options, but now the Exchange will allow weekly contracts in futures as well.

As per this futures trading in this index will be allowed in 7 serial weekly, monthly, and 3 serial monthly contracts, and traders can expect more volatility in futures!

What do Upstox traders need to know about this new index?
To provide you with a seamless and smooth experience while trading in this index, currently, we will not be able to provide weekly futures in the Nifty Financial Services index.

However, weekly and monthly options trading will be available, and monthly futures trading in the index will be available.

Please allow us approximately two weeks to roll out weekly futures in the Nifty Financial Services index so that you can enjoy state-of-the-art trading in weekly futures contracts as well, with Upstox.

That’s all about the Nifty Financial Services index. We will keep you updated on more info related to this index, stay tuned.

Zero exchange transaction charges: NSE has decided to waive-off all exchange transaction charges for all trades placed in the Nifty Financial Services index for the next 6 months, effective from today. 

The Wipro buy-back offer of Rs. 400 per share goes live on 29th December 2020 and you can apply for it on or before 11th January 2021.

Read on to know what this means and how you can apply for it quickly and easily –

What is a buy-back and why should you opt for it?
It’s a corporate action where a company offers to buy-back its shares from the existing shareholders usually at a higher price than the market price. To learn more about a buy-back, click here.

What does this offer mean for Wipro shareholders?
Existing Wipro shareholders holding Wipro shares as of 11th December 2020 (which is the Record date) can offer to sell their shares back to Wipro for Rs. 400 per share by applying to their buy-back offer on or before 11th January 2021.

How to apply for a buy-back?
Just follow these steps:

1. Login into keystone.upstox.com with your client code and back-office password
2. Click on “Account” on the top of the header line
3. Click on “Buy Back/ Takeover” from the drop-down
4. Click on “Apply” and enter the quantity
5. Submit the request

Note: Non-POA holders will need to enter a valid pin to authenticate the buy-back via EDIS to proceed.

When can you apply?
Apply for this buy-back on or before 11th January 2021.

What to keep in mind while applying?

1. You can only apply for this buy-back if you hold shares of Wipro in your Demat account as of 11th December 2020.

2. You shouldn’t sell these shares on or before 11th January 2021 if you’re interested to take part in the buy-back offer.

3. After applying and offering your shares up for a buy-back, you cannot sell them in the market and modify or cancel your original bid.

4. You can only sell these shares in the market If the company cancels the buy-back and you receive your shares back from the company.

5. You will receive the buy-back amount for the shares from Wipro / Registrar & Transfer Agent (RTA) directly into your bank account (this will be updated in the records of the depository as well).

6. A total of 23,75,00,000 shares will be accepted by Wipro for the buyback and the remaining shares not accepted by Wipro will be returned back to shareholders in their Demat account. The percentage of shares accepted will be decided based on the number of retail investors who have applied for the buyback. 

That’s all about the Wipro buy-back, stay tuned for more buy-back updates from Upstox!