Advertise With Us

    Fractional Entitlements in case of right issue of shares

    Posted By : Juhee Goyal / Published on : 06-Apr-2023 04:13 AM / View : 555 / Comment : 1

    Print button
    Hi Folks!

    What are fractional entitlements? What will be the entitlement if a shareholder holds less than 2 Equity shares?
    Read more on : issue shares right case entitlements fractional

    • Hi Juhee 

       

      The Rights Equity Shares are being offered on a rights basis to existing Eligible Equity Shareholders in the
      ratio of 1 (One) Rights Equity Shares for Every 2 (Two) Equity Shares held as on the Record Date. As per the SEBI Rights Issue Circular, the fractional entitlements are to be ignored. Accordingly, if the shareholding
      of any of the Eligible Equity Shareholders is less than 2 (Two) Equity Shares or is not in the multiple of 2 (Two) Equity Shares, the fractional entitlements of such Eligible Equity Shareholders shall be ignored by rounding down of their Rights Entitlements. However, the Eligible Equity Shareholders whose fractional entitlements are being ignored, will be given preferential consideration for the Allotment of one additional Rights Equity Share if they apply for the Additional Rights Equity Shares over and above their Rights
      Entitlements, if any, subject to availability of the Rights Equity Shares in this Issue post allocation towards the Rights Entitlements applied for.
      5 Further, the Eligible Equity Shareholders holding less than 1 (One) Equity Shares shall have ‘zero’ entitlement for the Rights Equity Shares. Such Eligible Equity Shareholders are entitled to apply for the Additional Rights Equity Shares and will be given preference in the Allotment of one Rights Equity Share, if such Eligible Equity Shareholders apply for the Additional Rights Equity Shares, subject to availability of the Rights Equity Shares in this Issue post allocation towards the Rights Entitlements applied for. However, they cannot renounce the same in favour of third parties.

      06-04-2023 / 04:38:23 AM
      Reply
    Please Select File:



Other Queries from Juhee Goyal
Like us on Facebook
Follow Us on Twitter

We are always here to help you. Don’t hesitate to contact us anytime!

+91-9988424211 or ask@compliancecalendar.in