Tata Consumer Products Limited (TATACONSUM)

Stock Opportunities
272

Hi,

Thanks for your reply.

Let’s say I have bought 50 RE traded shares than I need to apply for 50 rights shares through Entitlement process? And what happens if I dont get entitlement any shares?

And by when I need to sell these RE traded shares? Is it on or before 16th of August assuming 19th Aug is last date of the process?

Regards,
Deb

273

Hi

  1. RE = Rights Entitlement. For every RE that you own, you are eligible to buy one share of Tata Consumer - and you will receive allotment
  2. Please note that to buy the share you now need to pay the Rs 818. So if you have bought 1 RE for say Rs 370, your total acqusition price is Rs 818+370 = Rs 1188. As you can see that at RE price of Rs 370, there is very little difference between rights through purchased RE and market price
  3. You can sell you RE - but the last day for trading is 12-08. If you do not sell your RE by then, you either have to put up the additional Rs 818 per share by 19-08 to acquire the share or you will lose the money you have spent on buying the RE.

Here is a link with the dates

Good luck

5 Likes
274

I am trying to understand how to think about the benefit to existing stock in this Rights Issue.
If yesterday’s stock price was 1205 and the Rights issue was 818. Should we think we got a discount of 387 rupees per share?

280

I have a question on rights issue. Once rights shares are credited to dmat - will they trade like normal/original shares or they will be traded separately with other code

281

The rights entitlement was credited as soon as the process is launched and it was trading at CMP - 818. Now the issue window being closed, for those who have applied, new shares will be credited this week and will trade as a normal share at CMP. If you haven’t applied those rights entitlement will be extinguished

2 Likes
282

Thanks, so this means once the rights shares are finally listed, they will be just like ordinary shares? When we sell shares, how will it be determined if we are selling original shares or shares acquired via rights? (As this would be crucial to determine cost & date of acquisition). Thanks!