Bannari Amman Spinning Mills Rights Issue Rights Entitlement Calculator

Bannari Amman Spinning Mills Rights Issue Rights Entitlement Calculator

Record Date :

The rights issue record date is the date that determines the list of investors eligible to receive rights entitlement.

An investor must hold the shares of the company as on record date. Thus, to be eligible to receive rights entitlement, an investor must own fully paid-up shares before the record date.

If the record date is set as 10th April 2023, an investor must purchase the shares latest by 6th April 2023. Considering the T+1 settlement, the shares will get credited to the account by 10th April (the 7th, 8th, and 9th being holidays).

Post Record date : After this date, share purchasers will not be eligible for the rights issue.

No. of fully paid Equity Shares Held As on Record Date:

The investors need to enter the number of fully paid-up shares held by them as on record date in their Demat account.

Rights Entitlement Ratio

The Rights entitlement ratio is the number of rights entitlements an investor is entitled to receive based on the number of shares held by them as of the record date.

For example, a company offers to issue 5 rights shares for every 8 shares owned by the investor. This means that for every 8 shares held, an investor will receive 5 shares. Thus, if an investor owns 25 shares, he/she will be eligible for 15 rights entitlement shares (fractional part ignored).

Investor Rights Entitlement of Shares:

The investor's entitlement for rights shares is the total number of rights entitlement an investor is expected to receive in their Demat account.

This is a derived figure based on the rights entitlement ratio and the number of shares held by an investor as on record date.

Note: Rights Entitlement is a temporary credit of shares. An investor needs to exercise their right to get the rights shares by paying the application amount and completing the application process.

Rights Issue Offer Price :

This is the price per share at which the rights issue is offered by the company.

The rights issue offer price is generally lower than the market price of shares.

Current Market Price :

The Current Market Price (CMP) is the price at which the share is being traded on the stock exchange.

The CMP taken for calculation is the closing price of the previous day.

Total Amount Payable by Investor :

The total amount payable by the investor for the rights issue is the price an investor has to pay to buy the rights issue.

It is a derived figure calculated based on the entitlements an investor is entitled to receive multiplied by the rights issue offer price.

The calculation is as follows: The total amount payable by the investor for rights issue = (rights entitlement ratio x No. of fully paid Equity Shares Held As on Record Date x Rights issue Offer price). This is the total amount to be paid.

Discount compared to CMP (Total Savings):

The rights issue is usually offered at a price lower than the market price. Thus, this figure helps to know the amount an investor saves on account of the discounted price at which the rights issue is offered.

For example, if the share is trading at Rs 100 and the rights issue is offered at Rs 85 per share, an investor saves Rs 15 per share if he exercises his right. The total amount saved depends on the total number of shares an investor is entitled to receive based on his holding.

Terms of Payment:

The terms of payment determine whether an investor is required to pay the entire amount on the application or in tranches.

If a company offers to make the demand in tranches, you need to pay only a partial amount on the application as mentioned in the offer document. The remaining amount is called upon later by the company by sending call money notices.

Amount to be paid on Application (Rs):

The amount to be paid on the application is dependent on the terms of payment.

If the company demands the entire amount on application, the investor has to pay the entire amount i.e. rights issue offer price * No. of rights entitlement.

If the company demands money in part, an investor has to pay a certain percentage as mentioned in the offer document on the application and the remaining on subsequent call/s made by the company.

Issue Closure Date:

The rights issue closure date is the last date to participate in the rights issue offer.

If an investor fails to exercise their right to purchase the rights shares, the rights entitlement credited to their Demat account gets lapsed.

Rights Issue Disclaimer

The rights issue calculator is an aid to get indicative figures of the investment, payouts, and benefits. All the calculation is based on openly available information at the time of uploading the calculator. Investors must confer with their brokers, and trading advisors for accuracy, changes in terms and conditions by the companies, and other investor-related advice.

All information contained on this website is intended for reference only. Chittorgarh Infotech Pvt Ltd does not guarantee the truth, accuracy, completeness, or timeliness of the information, and accepts no liability (whether in tort, contract, or otherwise) for any loss or damage howsoever arising from or in reliance on the content of this website.

Chittorgarh Infotech Pvt Ltd does not warrant the security of any information which may be provided to any third party and is not responsible for any loss or damage suffered as a result of any access to or interaction with any other websites via this website.

Read more about Bannari Amman Spinning Mills Rights Issue

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