Arvind Fashions Limited has credited existing shareholders’ Demat accounts with REs (Rights Entitlements) after it announced a Rights Issue. What does this mean? A company...
Read more
Arvind Fashions Limited 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 Arvind Fashions Limited shareholders?
Existing shareholders of Arvind Fashions Limited (as on record date 24rd Feb’21) have three options -
1. They can use their REs to apply for more shares of Arvind Fashions Limited (in proportion to their existing shares - 3 for every 20 shares held) at a price of Rs.135 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.
What dates should one keep in mind?
Last date to apply: 18th March 2021
If you’re interested in applying for the right shares, you can apply on or before this date.
Last trading date for RE - 12th March 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
http://www.linkintime.co.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.
