Dhanlaxmi Bank has made a public announcement regarding a Rights Issue consisting of 141686767 equity shares, with a total value of up to Rs. 297.54 crores. The subscription for the rights issue will be open from 8 January 2025 to 28 January 2025.
| Timeline of the Right Issue of Dhanlaxmi Bank: | |
|---|---|
| Record Date | 27 December 2024 |
| RE Trading Start Date | 8 January 2025 |
| RE Trading Last Date | 23 January 2025 |
| Rights Issue Subscription Opening Date | 8 January 2025 |
| Rights Issue Subscription Closing Date | 28 January 2025 |
The detailed announcement by the company can be found here.
1. What is the ratio of the Rights Issue of Dhanlaxmi Bank?
The Rights Issue has been set at a ratio of 14:25. This implies that for every 25 share(s) of Dhanlaxmi Bank held by a shareholder, they will be entitled to receive 14 Rights Entitlements (REs)
2. Who will be eligible to receive the Rights Entitlements (REs) of Dhanlaxmi Bank?
Investors who possess shares of Dhanlaxmi Bank as on 27 December 2024 (Record Date) will be eligible to receive Rights Entitlements (REs).
3. How can we check if the Rights Entitlements (REs) of Dhanlaxmi Bank 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 Dhanlaxmi Bank gets credited to your Demat account.
4. Will Rights Entitlements (REs) of Dhanlaxmi Bank be tradable on the exchange?
The Rights Entitlements (REs) of Dhanlaxmi Bank 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 Dhanlaxmi Bank after closure of the trading window?
Trading in Rights Entitlements (REs) of Dhanlaxmi Bank 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 Dhanlaxmi Bank?
No. Using the Rights Entitlements (REs) you must apply for the shares under Rights Issue by paying a price of Rs. 21 to the company.
7. How to apply for the Rights Issue of Dhanlaxmi Bank?
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.