Announcements

Sundaram Finance Holdings 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 Sundaram Finance Holdings Limited  shareholders?
Existing shareholders of Sundaram Finance Holdings Limited (as on record date 27th April 2021) have two options - 

1. They can use their REs to apply for more shares of Sundaram Finance Limited (in proportion to their existing shares - 23 for every 49 shares held) at a price of Rs.50  per share.
2. If they do not wish to apply for more shares, they can even trade their REs in the market.

Please note: REs only give you the right to participate in the ongoing Rights Issue of a company. This means using these REs you can make an application for Rights Shares with necessary application money or renounce the REs before the issue closes.

REs which are neither subscribed by making an application with requisite application money nor renounced, on or before the Issue closing date shall lapse and shall be extinguished after the Issue closing date.

What dates should one keep in mind?
Last date to trade your Rights Entitlement: 28th May 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 Rights Shares:  2nd June 2021
If you’re interested in applying for the right shares, you can apply 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://online.cameoindia.com/ 

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.