How to apply for the Reliance rights issue?
Amit Manral, CFP?
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Reliance Rights Issue schedule:
Some key points:
- If you hold Reliance Shares as on 14th May then you are entitled to apply for the Rights, too. You will be entitled to 1 share for every 15 shares held in your Demat account. The no. of entitled shares is currently shown in your Demat account.
- You can apply for more no. of shares in this rights issue. There is no capping on the application. However, the allotment would be guaranteed only up to entitled no of shares (1:15), remaining shares allotment will be decided by the company.
- You have full authority to sell your entitles shares if you don't want to buy them. This facility would be available from 20th May onwards.
- Similarly, you can also buy the rights shares from the market if anyone else is selling them. For e.g: If you buy another 10 shares of rights entitlement from the stock market then you will have a total guaranteed allotment of 10 in the rights issue.
- Rights shares will be allotted at Rs. 1,257/- per share.
- You will be required to pay 25% upfront i.e. Rs. 314.25 per share. The balance 75% will be paid in two future installments as and when demanded by the company.
Application Process & Options:
1) Online Option: Via Internet Banking (ASBA)
This is very similar to an IPO application process via net banking.
Steps:
(a) Log in to your own online bank account
(b) It will have the option to invest in IPO/Rights.
(c) Select the Reliance rights issue option.
(d) Fill basic details of your folio, number of rights shares you want to apply, etc.
(e) Due to ASBA, the amount equivalent to the rights application value will be blocked. For e.g: If you applied for 10 shares then the amount blocked in your bank account would be 10*314.25= Rs. 3142.5/-. No money will be debited till allotment.
(f) After allotment, the money will be debited from your bank account as per the no of shares allotted.
2) Online Option: Through RTA website.
Steps:
(a) Go to this website https://rights.kfintech.com
(b) Here click on the tab - Apply for Rights issue through RWAP.
(c) Only for Resident investors. NRIs cannot use this
(d) It will then ask for basic details like PAN, DP ID, Folio no, etc. You will have to fill this online.
(e) Make payment via Net Banking or through UPI. No other payment method is allowed. Just keep in mind, UPI has a limit of 2 lacs.
(f) The money will be debited from your bank immediately i.e. 314.25 for every share applied. You will get a refund for the unallotted shares later.
3) Offline Option: Physical Form
(a) The forms for applying in these rights have been already mailed to the entitled investors last week.
(b) A duly filled application form needs to be submitted in the SCSBs branches. Some SCSBs are ICICI bank, Kotak bank, Axis bank, HDFC bank, SBI, etc. The SCSB will block the application amount in your ASBA account.
I hope you find this article useful.
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