1) What is the Right Issue schedule?

Ans: The Right Issue date is from 20th May (Wednesday) 2020 with the issue closing date being 3rd June (Wednesday) 2020.

2) When is the date of Allotment of shares?

Ans: The Allotment date for the right issue share is on (or about) 10th June (Wednesday) 2020.

3) What is the Right Entitlement for the Issue?

Ans: 1 (One) right issue share for every 15 Equity shares held as on record date (14th May 2020).

4) Mr. X has 58 equity shares for Reliance Industries as on record date. He is entitled for 3 right issue shares. Is that correct?

Ans: That is Correct. The count of shares will be divided by 15 (right issue ratio being 1:15) and fractional entitlement will be ignored (SEBI Right Issue Circular). For e.g. An investor having 74 equity shares will be entitled to 4 right issue for the entitlement is coming as 4.9 which will be rounded off to 4.

5) What is the Issue Price of the Reliance Right Issue?

Ans: Rs. 1257/- per right issue share.

6) What will be the payment schedule for the Right Issue?

Ans: On Application, each investor must pay Rs. 314.25/- per Right issue (equivalent to 25% of the Issue price). The subsequent calls will be for Rs. 314.25/- per share in May 2021 and the remaining Rs. 628.50/- per share in November 2021.

7) Can an application in the rights issue be made using third party account?

Ans: Investors can only make payments from bank accounts held in their own name. Third party applications will get rejected.

8) What are the methods to apply for the Rights issue:

Ans: Application can be made via 3 options:

1. R-WAP platform from KFintech
2. Physical mode application
3. Bank login, if the banker provides this facility  

Cheque payments are not entertained. Only ASBA process is accepted for physical form application. ASBA – Applications supported by blocked amount from the Bank.

9) As per the application process, will the R-WAP system give an acknowledgement of the application?

Ans: Yes. Investors will be given an acknowledgement upon completion.

10) How does an Investor understand that Right Issue shares have been allotted?

Ans: The Company will send allotment advice to the Investors who have successfully received right issue allotment.

11) I have 10 Reliance Industries shares as on record date. Can I apply for Reliance right issue?

Ans: The ratio for the right issue allotment is 1:15, which means for every 15 equity shares held by an Investor as on record date will be entitled for 1 right issue share. So, in this case, the investor falls short of the rights issue requirement.

12) What is the procedure for Right issue application?

Ans: Resident Investors should visit R-WAP (url: https://rights.kfintech.com ) and fill the application form available in R-WAP in electronic mode. The investor must provide correct DP ID, Client ID, PAN Details and other relevant details while filling the application form.

13) Can an NRI apply for the Right Issue on R-WAP Platform?

Ans: No. An NRI cannot apply for the Right Issue through the R-WAP Platform. (Only residents can use R-WAP). NRI’s will have to use the downloaded version of soft copy application forms and make an application via ASBA process.

14) I have 100 Reliance Industries shares as on record date; I am entitled to 6 right issue shares. Can I apply for 10 right issue shares?

Ans: You can apply for more than your entitlement and pay for such additional shares. If any other equity shareholder has not applied for their entitlement, the company may allot such rights shares as additional shares to shareholders who have applied for more than their entitlement as per the allotment process. Any balance money after adjustment of application money for such additional shares will be refunded back to the investor. 

Author

Rahul Saha is the author of this article. He is a Senior Wealth Manager at Mitraz Financial Services Pvt. Ltd. The author can be reached at micontact@mitraz.financial.

Disclaimer

The entire contents of this article are solely for information purposes and have been prepared based on relevant provisions and as per the information existing at the time of the preparation.

It doesn’t constitute professional advice or a formal recommendation. The author has undertaken the utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions.

You are kindly requested to verify & confirm the updates, if any, from genuine sources before acting on any of the information provided hereinabove.