Skipper right issue. Lot of doubts i see from fellow investors here.
Reliance RE also listed on exchanges and folks could trade
Skipper right issue. Lot of doubts i see from fellow investors here.
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Skipper-RE is listed.
Those who are invested in Skipper for the long-term and have received Skipper-RE ā what are your views?
Hold & subscribe - or sell it? 195 VS CMP of 237odd is a 42/share discount.
Also, those who are going to hold ā can you explain the forward payment & subscription process?
Hi Moonrise will try to explain to the best of my ability.
If you hold 10 shares you are eligible to buy 1 share of skipper.
To buy the same you have to follow the ASBA process of applying rights issue through the bank (the same way as you apply for ipo)
Caveat here is suppose you have 100 shares and you are eligible for 10 , you can apply for more than 10 through the ASBA application process. In the final allotment you might end up having more if other eligible shareholders have chose to skip.
I did a similar exercise with piramal pharma rights issue, I applied for 250 and got all the 250 where in I was eligible for only 150. Regretted that I should have applied more in the process.
Coming to the second part. you just need part payment to book the share , the rest you have to pay later once your shares are allotted.
If you are buying Skipper-RE from the secondary market then you will be allotted that many more during the rights issue. Doesnāt makes sense now as it trades at no discount value when I last checked.
skipper now trades at 236 and SKIPPER-RE-BE trades at 42. The price difference between rights issue and market price is 236-194=42. so if you want to buy skipper you can directly buy from market instead of buying SKIPPER-RE-BE and later paying remaining through rights issue.
SKIPPER-RE-BE is floated mainly for people who donāt want to subscribe to rights issue and can get the small gains. Just that if they forgot to login during this week they would have missed out seeing something like this in their demat which would get extinguished after this week
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After paying 25% how is the remaining money called, is it generally in installments.
Suppose if I miss the due date for payment of rights or there was an error in my Asba application can I mail them and pay the remaining amount.
The company mentioned it would call for it. Not sure how it happens. My guess is after you are sure of the number allotted to you , you can make the rest of the payment. I have already made my application.
If you make mistake in ASBA or miss the dead line Iām afraid I donāt think you can make amends.
maybe someone knowledgeable can pitch in.
Yes, got your point about a marginal difference between 195 and CMP. However, that difference can be substantial for those who have a larger holding (and hence large RE qty), and also once CMP moves north. And also if someone made their first entry above 195 and has an avg above 200.
My view is that CMP will remain low until Mondays cutoff. Subscription should be huge as Skipper is poised for exponential growth.
Can you shed some light on how youāve applied, what steps youāve followed? Will help those of us who are first time pref appliers and new to the process.
I checked via my bank dashboard and I can see the option but the price is 48 and not 195, which Iām assuming will change post Monday?
Skipper has allotted Rights Issue 1:10 ie one Rights Equity for every 10 shares held.
Today that REs have been credited to eligible share holders. RE issue will be at 198/-share. Hence there is a difference of Rs 42/- from todays CMP of skipper. Those who are not interested to apply for RE, have sold their share in open market and are available at Rs 42/-. (ie the difference between Offer price and CMP of skipper).
Those who want apply for Rights Issue, to apply on or before 05 Feb by paying Rs 48.25. you will be issued with Skipper BE share of face Value 0.25 (present FV of skipper share is Rs 1). You may need to pay additional Rs 144.75 as and when asked by the board to convert that share to a normal skipper share of FV of 1 (Up to three additional Calls, with terms and conditions such as the number of Calls and the timing and quantum of each Call as may be decided by the Board/ Rights Issue Committee āfrom time to time to be completed on or prior to March 2025).
From 05 Feb, REs allotted will expire and wont be avl for trading.
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Those who want to apply ā- where do we pay this 48.25? Is it via the ASBA process?
Wonder why there isnāt a step by step guide on this anywhere. Iām sure many have similar questions.
Yes it is via ASBA process , many times companies make processes tedious so that promotors can buy more
You gave the answer yourself
āI checked via my bank dashboard and I can see the option but the price is 48 and not 195, which Iām assuming will change post Monday?ā
Just fill in the details, your cdsl/ndsl depository id and the required quantity, the price wont change its 48.5 only. (Krishna kumar have explained how you would be paying the remainder of the amount at various time point, prior to March 2025 ). Once the form is submitted you have to wait for the allotment where you get to know the number of shares.
Got it, thanks @bully
Is there a lock in period during which allotted rights shares cannot be sold?
Why would long term investors not opt for this?
@Krishna_Kumar @bully @Sarb_Sandhu
Is this process correct for those who had Skipper before rights issue and therefore have the 1:10 RE shares showing in their demat.
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If I have 1000qty of Skipper, and hence I am seeing 100 qty Skipper-RE-BE in my demat, I need to log in to my bank, connect my demat, and via ASBA pay & block 100 qty Skipper-RE-BE via the bank portal. This should secure the 1:10 allotted to me.
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Those who do not hold skipper, but wish to apply, can also follow the same process?
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Those who hold skipper, and have the 100, can follow the same process and even bid for 200 qty?
Are all the three situations understood correctly? This will help many following the thread.
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1st and 3rd is on point.
For second, people who do not own Skipper Ltd but wish to buy the right shares being traded in markets can do so by buying SKIPPER -RE -BE on NSE & SKIPPER -RE on BSE.
With this they get to own the fully paid shares once all the call money is paid which I believe will have to be done over two tranches and the amount being paid now as the difference between the right issue price and the present market price.
For i.e. the right issue was done at 194, whereas, the market price is 240 so ideally the rights should trade at 46. Post buying the rights from market one will have to pay the application amount @48.5 per right under the ASBA in individualās bank.
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Great work, lads. Thank you for contributing and helping the community 
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Regarding point 1, I would suggest you to apply for more than 100 (which is you eligibility criteria since you are holding 1000). Since the left over shares are allotted to people who have subscribed for more.
p.s: your contribution to skipper thread is no less. good work
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Iāve already submitted my application.
Hmm, can I make a 2nd application?
And, thank you. Iāve invested a lot of time on Skipper, lot of scuttlebutt too, itās 10% of my net worth and my largest investment. Skipper has all the ingredients to grow like an Elecon has. Time and patience.
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