Akshar Spintex has made a public announcement regarding a Rights Issue consisting of 487480500 equity shares, with a total value of up to Rs. 48.75 crores. The subscription for the rights issue will be open from 9 September 2024 to 30 September 2024.
| Timeline of the Right Issue of Akshar Spintex: | |
|---|---|
| Record Date | 23 August 2024 |
| RE Trading Start Date | 9 September 2024 |
| RE Trading Last Date | 24 September 2024 |
| Rights Issue Subscription Opening Date | 9 September 2024 |
| Rights Issue Subscription Closing Date | 30 September 2024 |
The detailed announcement by the company can be found here.
###1. What is the ratio of the Rights Issue of Akshar Spintex?
The Rights Issue has been set at a ratio of 13:8. This implies that for every :8 share(s) of Akshar Spintex held by a shareholder, they will be entitled to receive 13 Rights Entitlements (REs)
###2. Who will be eligible to receive the Rights Entitlements (REs) of Akshar Spintex?
Investors who possess shares of Akshar Spintex as on 23 August 2024 (Record Date) will be eligible to receive Rights Entitlements (REs).
###3. How can we check if the Rights Entitlements (REs) of Akshar Spintex have been credited in the Demat account?
Rights Entitlements (REs) are generally credited to the Demat account before the opening date of the issue. You will receive a notification from CDSL (via email and SMS) when Rights Entitlements (REs) of Akshar Spintex gets credited to your Demat account.
###4. Will Rights Entitlements (REs) of Akshar Spintex be tradable on the exchange?
The Rights Entitlements (REs) of Akshar Spintex will be tradable on the stock exchanges for a limited period and will then be extinguished. During that trading period, you can either sell off your allotted Rights Entitlements (REs) or even you can purchase more Rights Entitlements (REs) in case you want to participate in the Rights Issue.
###5. What will happen to the Rights Entitlements (REs) of Akshar Spintex after closure of the trading window?
Trading in Rights Entitlements (REs) of Akshar Spintex is allowed only for a specific period (referred to as the trading window) on the stock exchange(s). Once the trading is suspended, one can renounce their rights only through off-market renunciation. Eligible Shareholders are requested to ensure that renunciation through off-market transfer is completed in such a manner that the Rights Entitlements (REs) are credited to the demat account of the Transferee on or prior to the Issue Closing Date.
###6. Will Rights Entitlements (REs) be converted to actual shares of Akshar Spintex?
No. Using the Rights Entitlements (REs) you must apply for the shares under Rights Issue by paying a price of Rs. 1 to the company.
###7. How to apply for the Rights Issue of Akshar Spintex?
Once you either receive the Rights Entitlements (REs) from the company or purchased them from the market, you can apply for the rights shares using the below methods:
- Online ASBA (Applications Supported by Blocked Amount). If your bank supports it, like an online IPO application.
- Online RWAP facility provided by the company RTA.
- Offline (physical ASBA) if your bank does not support online ASBA. For this, you would need to fill out an application form which you would have received from the RTA (Registrar and Transfer Agent) of the company via email/courier/speed post. You will have to fill out the form and submit it at a Self-Certified Syndicate Banks (SCSBs) branch.
###8. What happens if Rights Entitlements (REs) are not renounced or even used for applying Rights Issue?
If you do not renounce or use the Rights Entitlements (REs) to apply for the rights issue, your Rights Entitlements (REs) will expire worthless.
You can read more on Rights Issue and Rights Entitlements (REs) here.
What do you think about this Rights Issue? Feel free to use this thread to discuss.