Thanks, This is really helpful information!
I think it makes sense to apply for rights issue.
Company is doing decent. Promoters are growth oriented, fmcg type business albeit lower margins, promoters participation in rights as they might be looking to increase shareholding through subscribing, comfortable valuation
Suppose I own 1000 shares. Can I apply for more than 1000 shares , letâs say 2000 shares in this rights issue?
if some rights shares are unsubscribed, I will get it correct?
There are two ways in which you can get the Rights Entitlement:
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Your own REs will be credited to you from Monday. So if you own 1000 shares, you will get 1000 REs automatically. The Price for this will be the Rights Issue price.
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There will be a limited window for RE trading. Those who donât want to exercise their REs sell it instead in the open market. These REs have their own ISIN code and trade as a separate security on the exchanges (I assume Heritage Foods will share this detail when the time comes). You can buy additional REs here if you want. But these will likely trade closer to the CMP.
Once you have all the REs (Ones you are automatically entitled to + Ones you purchase from open market), you can convert them to Shares via Internet Banking. The Zerodha link above has more details on this.
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Yes thatâs correct. The unsubscribed portion is alloted to all the shareholders who have applied for more than 1x shares.
Please refer my message just before the one you have replied on.
Did anyone go through the offer letter?
The Lead Manager, Chartered Finance Management, has copied the template from one of their old Rights Issue I guess (Suditi).
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In a couple of places, I noticed that the hyperlinks say Heritage, but redirect to Suditi website (Ex: Page 268).
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In couple of other places, the text says KFintech, but redirects to some other website (Ex: Page 274)
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Elsewhere, I saw that the Issue Closing Date is mentioned as September 2022, which was the Issue Closure for Suditi.
This reflects very poorly on both Heritage Foods and the Lead Manager.
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Infact on receiving the letter of offer from Kfin technologies,the link for downloading the application form is not working. Infact it seems the whole exercise seems be to designed in a way that maximum number of retailers loose their rights entitlements for one reason or another. Reflects very poorly on management . Now it has become straight as an arrow for meâto stay out of companies where a little bit of political connection is there. They may not be doing any thing but the managementâs mind is political( siaysi dimaag as they say in Hindi)
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If I want to apply for more rights than I have, I need to do both : I) Buy RE shares from open market @CMP ~140/- and II) Apply for extra shares via ASBA @5/-
Is that correct?
Option I) will 100% get you additional shares. But the Price is steep (Compared to Option II)).
Alternatively, the Price in Option II) is very cheap. But you are assured only 1 extra Share. Anything extra will be decided based on how many Shares others who over-subscribed hold and how many theyâve applied for.
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Is there any option or link to apply for rights online.
Hi,
Rights Entitlements will be deducted the day rights shares will be credited to your Demat account, thatâs usually a day before listing.
Not sure abt ASBA amt returned, bt with HDFC I know that watever oversubscriptn I dont get that is returned at this stage.
From wat u mentioned, a single application which applies above the eligible REs is correct way to apply though.
Disc :- Not invested in Heritage rights bt have participated in 3-4 other rights issues in last 6 months.
Jst mentioning For benefit of all - The company RTA is best contact for rights related query. Some of them have good websites which provide all the updates and relevant info. For others, best to call nd check.
P.S :- Flag nd remove this if irrelevant on this thread.
314.79% Subscribed.
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Deemed Date of Allotment Feb 21, 2023
Credit Date Feb 23, 2023
Listing Date Feb 27, 2023
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Did anyone get the Rights issue shares credited into their Demat a/c , if its trading from 27th Feb then it should be in the Demat but I am still waiting in Zerodha Demat ?
Anyone has any experience to share ?
Did anyone who oversubscribed succeed in getting 100% of the applied amount? I wonder how was the oversubscribed amount distributed amongst the rights holders?
Seems like the shareholders who over subscribed to the rights issue managed to secure 6% additional shares. This is corroborated by the increase in shareholding % of the promoters as well as the disclosure made by DSP. (6.05% - 6.11%).
9C680795-F403-4D08-9440-1C3F0C88C0BA-182740 (1).pdf (3.5 MB)
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GENERIC VIEWS ON INDUSTRY --HENCE POSTED AT Hatsun Agro & Heritage foods thread âMODS please remove if not required here !
Milkflation views --18th Apr23 --BQ Prime --Hatsun Agro Products Mr. Chandra Mogan interview :
âThere was a shortage but this year ( Calendar Year 2023) it will not be the same in future. Last year we had a diff. issues i.e after 2 yrs of demand destruction due to covid, Demand picked up internationally and domestic. The international fat prices went up dramtically to 583 INR in Indian Value & 7100 USD. So India started exporting before stablising last year so India exported over & above the normal Qty of Ghee branded, they exported 20k Tonns extra. Normally this Qty is built for the lean period in a flush period to protect.
âSo after this there was a shortage and inflation started creeping in. I dont expect further inflation
âDemand/Supply mismatch ? --2 things have happened. (1) 20k tonns of extra export of Butter which is the real problem so this was in Jan/feb. Going forward Delhi had comparatively so the flush of delhi extended by a month which is a good news.
âOur normal flush season in south starts from May & it has started now in Apr first week and gaining momentum & by the time delhi is shutting off now the south and Maharastra has started coming up so the problem was acute it was in Jan/Feb & not today and by June noone will be talking about Milk shortage etc and Inflation will also moderate to 3 to 4 % down by June/July.
âWe dont think there is no need for importing now and the flush coming in now in south & MH and its too late and it will be damaging the local mkt.
âPeak prices ? do we stablise here ? âDont expect any price increase here-after , cos had a tough time last year as inflation made them pay a higher price to farmers and the consumer prices they could adjust immediately so a year of this tough times is over and we are on track of recovery. It can only moderate after June but old prices will never come back as from these prices 3 to 4% it might come back only
âHow does these price increases impact cos like yours ? â One major issue is skimmed milk powder is taxed at 5% , Milk is separated into 2 parts ( skimmed milk powder & Milk Fat & during the summer we reblend it to make milk to compensate the missing volume say 8/10% so this particular our GST rates are 12% for fat and 5% for Skimmed milk so this is getting added up on reconstitution and which is adding inflation pressures. eg. Fat at 12% + 5% SMP is adding cost by almost 8% to the full cream milk & we have requested govt to consider reducing tax on 12% to 5% for fat & with this move govt. can moderate the inflation by 2/2.5% straight-away
âPrice increases like this , how it impacts biz prosects for a co. like yours ? â In the long run its good for co. and country. After 2 yrs of covid farmers were in a shock to whether to focus on this or not & this inflation has given him a leg up and he will be in biz and will continue to supply . I expect that we are on the moderation of coming down by June end.
âMarginsâTill march we couldnât maintain but here after it will be a normal year subject to no other volatility.
PS : Pardon the spelling mistakes
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Heritage foods right issue shows how corrupt Mr.N.Chandrababu family is ⌠âŚ!!
Its a complete scam ! What sebi and other small shareholders are doing .
Tell me 1 thing why Right issue ? Why not Bonus ?
just to take benefit of small share holders unawarenessâŚ
Disc. Not invested
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