InvestorQ : How much do Reliance shareholders have to pay at the time of application for the rights issue and how will F&O contracts be adjusted by the rights?
Debbie Mascarenhas made post

How much do Reliance shareholders have to pay at the time of application for the rights issue and how will F&O contracts be adjusted by the rights?

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Crowny Pinto answered.
8 months ago
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RIL is asking for only 25% at the time of application and the balance will have to be paid in one or two calls as decided by the company. At a rights price of Rs.1257, the investor will have to pay only Rs.314.25 per share at the time of application. If you opt for the ASBA route, then only that much amount will be blocked in your ASBA bank account. It is also possible that the partly paid rights may list and trade separately for the time being. In terms of F&O contract adjustments, the futures price will adjust on its own in tandem with the stock price movement. The lot size and strike prices will get adjusted by the adjustment factor of (0.99061), which is the factor derived from the rights ratio. Thus the lot size will be divided by the factor and the option strike prices will be multiplied by the factor. So the lot size of 500 becomes 505 shares (500/0.99061) while the strike price of Rs.1500 will stand revised down to Rs.1486 (1500*0.99061). All these adjustments will be effective from 13 May; which is the ex-rights date.

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