Corporate Action: Rights Issue of IFL Enterprises Limited

IFL Enterprises Limited has made a public announcement regarding a Rights Issue consisting of 49,52,69,896 equity shares, with a total value of up to Rs. 49.52 crores. The subscription for the rights issue will be open from 27th May, 2024 to 25th June, 2024. The details are as below:

Timeline of the Right Issue:
Last Date to Buy shares to participate in the Right Issue 16 May 2024
Record Date 17 May 2024
Credit of Rights Entitlements and Bid/Offer Opening Date 27 May 2024
Renunciation of Rights Entitlements Last Date 20 June 2024
Issue Closing Date 25 June 2024

Investors or traders who currently possess shares of IFL Enterprises Limited as of 17 May 2024 (Record Date) will be eligible to receive Rights Entitlements (REs). These REs will be tradable on the stock exchanges for a limited period and will then be extinguished. You have the option to utilize these REs to apply for the rights shares of the company or, if you choose not to participate in the Rights Issue, you can sell them in the market. For further details, please refer to the company’s official announcement here. Note that trading in REs is allowed only for a specific period (referred to as the trading window) on the stock exchange(s). Once the right entitlement trading is suspended, one can renounce their rights only through off-market renunciation.

Eligible Equity Shareholders are requested to ensure that renunciation through off-market transfer is completed in such a manner that the Rights Entitlements are credited to the demat account of the Renounces on or prior to the Issue Closing Date.

The Rights Issue has been set at a ratio of 198:100. This implies that for every 198 share(s) of IFL Enterprises Limited held by a shareholder, they will be entitled to receive 100 REs.

The issue price of the share via the Rights Issue is Rs. 1, which must be paid to the company.

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 your REs gets credited to your DEMAT account.

Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using the below methods:

  1. Online ASBA (Applications Supported by Blocked Amount). If your bank supports it, like an online IPO application.
  2. 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.
  3. Online RWAP facility provided by the company RTA.

You will need to enter your Dhan Demat account’s BOID which is a 16-digit number which can be found in the Profile section while applying for the rights issue.

If you decide not to apply for the rights issue, your purchased REs will expire, and you will lose the premium you paid to acquire them. These REs are issued as temporary Demat securities, and they will become void if not exercised or renounced once the trading window is closed.

You can read more FAQs on Rights Issue and Rights Entitlements here. What do you think about this Rights Issue? Feel free to use this thread to discuss.