What is Rights Entitlement?

Rights Entitlement (RE) is the rights issued by the company to existing shareholders to subscribe to new shares / other securities that the shareholder of a company is eligible to apply for under the Rights Offer. REs are offered to shareholders based on the ratio of existing equity shares held as on the record date.

Key features

  • REs shall be traded in the secondary market platform of stock exchanges with T+2 rolling settlement, similar to equity shares.
  • Trading in REs on the secondary market platform of stock exchanges shall commence along with the opening of the issue and shall be closed at least four days prior to the closure of the Rights Issue.
  • Investors holding REs in dematerialized mode shall be able to renounce their entitlements by trading on the stock exchange platform or via off-market transfer. Such trades will be settled by transferring dematerialized REs through depository mechanism, in the same manner as done for all other types of securities.
  • The commencement of trading in REs shall not be mistaken for ordinary units of the concerned company.
  • Application for a Rights Issue shall be made only through the ASBA facility.
  • No withdrawal of application shall be permitted by any shareholder after the issue closing date.
  • Note that the purchase of REs only gives the right to participate in the ongoing Rights Issue of the concerned Company/InvITs by making an application with the requisite application money or to renounce the REs before the issue closes. REs that are neither subscribed by making an application with requisite application money nor renounced, on or before the Issue Closing Date, shall lapse and shall be extinguished after the Issue Closing Date.

    The following are details of the upcoming trading in the Bharti Airtel Ltd. Rights Entitlement. It should not be mistaken for ordinary units of the concerned company:

    Name of the Company Bharti Airtel Ltd.
    Type of Security Rights Entitlements (REs)
    Trading period for Renunciation of Rights Entitlements (REs) From Oct 5 to 14, 2021
    Scrip Code 750673
    Scrip ID AIRTEL-RE
    ISIN No. INE397D20024
    Market Lot 1
    Group R

    Note that the Rights Issue of Bharti Airtel Ltd. (Equity Shares) will open on Oct 5 and will close on Oct 21, 2021.

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