The Aditya Birla Fashion and Retail Limited recently took the decision to raise funding through its Rights Issue, after the proposal was approved by the Board of Directors. The ongoing rights issue will be open for subscription from 8th July, 2020 to 22nd July, 2020 and here’s everything you need to know about it.
Understanding what a rights issue 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 issue. This involves offering existing shareholders the chance to subscribe to an additional amount of shares at a discounted price. The proportion of the number of shares issued to each existing shareholder varies based on their present holdings. In the case of Aditya Birla Fashion and Retail Limited’s Rights Issue, the proportion issued is 9:77. This means, if you currently hold 77 shares of Aditya Birla fashion and Retail Industries Limited, you are eligible to bid for 9 shares in the ongoing rights issue. In case you are an existing shareholder, eligible to subscribe to the right issue, you can choose to subscribe to or relinquish the rights. Additionally, as a third option you can also sell these rights, once they are credited to your account, to another investor just as you sell other holdings. You can add Aditya Birla Fashion and Retail Limited to your watchlist on the Upstox Platform by searching for ‘ABFRL’
Eligibility for subscribing to the Aditya Birla fashion and Retail Limited Rights issue
In order to be eligible for this rights issue, you should have bought Aditya Birla Fashion and Retail Limited shares before 1st July, as this is the record date to the right issue. You will also have received a rights application form on the email Id linked to your Demat account. Additionally, Rights entitlement will be credited to your Demat account in the form of temporary securities.
Applying for the Aditya Birla Fashion and Retail rights issue made simple
You can exercise your rights by making a payment through R- WAP by clicking on https://linkintime.co.in/RightIssues/index.html
Here are the details you will need to apply:
- DP ID
- Client ID
- PAN number
- Bank account number
To find your DP ID and Client ID,
1)Login to the Upstox Pro Mobile app with your credentials
2)Click the icon with three lines on the top left corner
3)Click on your name at top left of the page
4)You will see your account details listed on a screen similar to the one below
Note down the depository name and your Demat account number.
The first 8 digits of your 16 digit Demat account number is your DP ID and last 8 digits is your Client ID. Your DP Name is RKSV securities India Private Limited.
Once you have these details ready, you can follow these steps:
1) Visit https://linkintime.co.in/RightIssues/index.html
2) Use the drop down menu to select the company name as ‘Aditya Birla Fashion and Retail Limited - Rights Issue’
3) Choose DP/Client ID or Folio Number or Renouncee
4) Enter your PAN details
5) Select resident type as ‘Resident Indian’
6) Enter your mobile number and Email Id
7) Check the pre-filled details i.e. shareholder name, number of shares held as on record date and number of shares entitled
8) Enter the application number
9) Enter the number of shares you wish to apply for
10) Check the pre-filled application amount
11) Choose between Net Banking & UPI for the fund transfer
12) Select the name of your bank from the drop down menu
13) Enter your bank’s IFSC code
14) Enter the correct account holder’s name
15) Select between Single & Joint account type, whichever applicable
16) Enter and re-enter your bank account number
Important dates to keep in mind for the rights issue
Along with the opening and closing date of the issue, here are a few other dates to make note of.
8th July – allotment of rights
17th July – last day to sell your rights entitlement
What to do if you don’t want to apply to the rights issue
In case you do not wish to apply for the rights issue, it is advisable for you to sell the quantity of shares allotted to you via the issue on or before 17th July 2020, to ensure that you do not lose the premium you hold with the current market price.
More questions on your mind? Read the FAQs here: https://linkintime.co.in/RIGHTSISSUE/FAQ.pdf
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