Right Issue Doubts

krisen · 1 Right Issue Doubts Thu Apr 21, 2011 8:57 am

krisen

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I am having a doubt about right issue XR date,

1) To become eligible for right issue do i have to hold the shares until the end of XR date?
2) If i sell the shares on XR date will i be able to get the right issues
3) if i buy shares on XR date will be able to get right issue

Slstock · 2 Re: Right Issue Doubts Thu Apr 21, 2011 9:09 am

Slstock

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[quote="krisen"]I am having a doubt about right issue XR date,

To become eligible for right issue do i have to hold the shares until the end of XR date?

XR date belong to the seller. Meaning on the XR date if you sell you get the rights. If you buy on XR you won;t get the rights

raa · 3 Re: Right Issue Doubts Thu Apr 21, 2011 9:52 am

raa

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1) You are eligible for rights depending on how many shares you hold BY the XR date. i.e: if XR date is 25th April, all shares you hold or purchase by 24th will be eligible for rights. Any purchases on or after the 25th will not give you rights.

2) Yes, because your rights allocation is based on your shareholding at the end of the day before the XR date.

3) Nope.

hope it's clear enough.

krisen · 4 Re: Right Issue Doubts Thu Apr 21, 2011 10:01 am

krisen

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raa wrote:1) You are eligible for rights depending on how many shares you hold BY the XR date. i.e: if XR date is 25th April, all shares you hold or purchase by 24th will be eligible for rights. Any purchases on or after the 25th will not give you rights.

2) Yes, because your rights allocation is based on your shareholding at the end of the day before the XR date.

3) Nope.

hope it's clear enough.

Thank you very much

Chabbi · 5 Re: Right Issue Doubts Thu Apr 21, 2011 8:53 pm

Chabbi

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raa wrote:

3) Nope.

hope it's clear enough.

My concern is third item. Today i contacted my broker to buy some LDEV then he told me that no need to buy today u can buy on monday. even u buy on XR day u will entitled for rights. so don't get panic and buy today. I was surprised & i cancel my order too.

He was quite sure even we bought XR on day v will get the rights as well. Pls correct me Smile

Cheerz

pushpakumara · 6 Re: Right Issue Doubts Thu Apr 21, 2011 9:09 pm

pushpakumara

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Chabbi wrote:

raa wrote:

3) Nope.

hope it's clear enough.

My concern is third item. Today i contacted my broker to buy some LDEV then he told me that no need to buy today u can buy on monday. even u buy on XR day u will entitled for rights. so don't get panic and buy today. I was surprised & i cancel my order too.

He was quite sure even we bought XR on day v will get the rights as well. Pls correct me

Cheerz

I already have LDEV. My question is when are they going to credit allotments to my account. Is it from the date of commencement of trading of rights?

StocksWatch · 7 Re: Right Issue Doubts Thu Apr 21, 2011 9:42 pm

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[/quote]

My concern is third item. Today i contacted my broker to buy some LDEV then he told me that no need to buy today u can buy on monday. even u buy on XR day u will entitled for rights. so don't get panic and buy today. I was surprised & i cancel my order too.

He was quite sure even we bought XR on day v will get the rights as well. Pls correct me Smile

Cheerz

[/quote]

I think either your broker has got it worng or there had been a miscommunication.

Trading in securities displaying 'XR' will not entitle you to receive rights.

For LDEV the XR date is 25.04.2011, that is next Monday. So you will not be entitled for any rights for the shares bought on that day.

See their announcement below.

Proportion: 15(Fifteen) for 1 (One) EGM/ Provisional Allotment : 21-04-2011 XR : 25-04-2011 Dispatch of Provisional Letter of Allotment : 29-04-2011 Rights Trading Commences on : 06-05-2011 Renunciation : 13-05-2011[b]

smallville · 8 Re: Right Issue Doubts Thu Apr 21, 2011 10:00 pm

smallville

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Chabbi wrote:

raa wrote:

3) Nope.

hope it's clear enough.

My concern is third item. Today i contacted my broker to buy some LDEV then he told me that no need to buy today u can buy on monday. even u buy on XR day u will entitled for rights. so don't get panic and buy today. I was surprised & i cancel my order too.

He was quite sure even we bought XR on day v will get the rights as well. Pls correct me

Cheerz

XR is excluding rights.. Even an office boy in a brokering firm would tell u the meaning of XR.. Mind you sharing the broker firm that messed up so mcuh?.. you shud immediately leave this fellow..
Telling something mistakenly is ok, any1 can make mistakes but knowing the meaning of this word and with the exp is the industry that's suisidel to have a broker like this Evil or Very Mad

DK · 9 Re: Right Issue Doubts Thu Apr 21, 2011 10:15 pm

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Hi Chubby,
StocksWatch has quite politely put it as a miscomm, but I would just say your broker is a moron Smile

But to be quite honest machan,I think this is a really a blessing. There are a few of us who are questioning the sanity of buying this share at this price (check http://forum.srilankaequity.com/t2846-ldev-prospect?highlight=LDEV, http://forum.srilankaequity.com/t2871-ldev-shares?highlight=LDEV, http://forum.srilankaequity.com/t1884-lankem-development-rights-issue-help-needed?highlight=LDEV) As far as I can see, buying this today will only cause you a loss, or rather high probability of making a loss.

Of course, there is this really small chance that some sort of an unscheduled holiday came in on after the annonuncement of rights and therefore the dates have got shifted by one (and that your broker is correct). But usually others tend to spot this if this is the case. Smile

Last edited by DK on Thu Apr 21, 2011 10:21 pm; edited 1 time in total (Reason for editing : minor edit)

Akalanka · 10 Re: Right Issue Doubts Thu Apr 21, 2011 11:45 pm

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regarding this i have a doubt . . so plz clarify Very Happy

Proportion: 15(Fifteen) for 1 (One) EGM/ Provisional Allotment : 21-04-2011 XR : 25-04-2011 Dispatch of Provisional Letter of Allotment : 29-04-2011 Rights Trading Commences on : 06-05-2011 Renunciation : 13-05-2011

so in this announcement the proportion is 15 per one
so the share holder will get 15 rights per each normal share,
and then Rights share can be converted to normal..

A holds (X) no of LDEV shares ,
so he will have (15X) LDEV.R , so if A accepts the rights he ll be able to have (15X) LDEV.N , and to convert them for each LDEV.R should pay 25.00 per each..

This is what i understand.. if i am wrong plz do correct me

[b]

Chabbi · 11 Re: Right Issue Doubts Sat Apr 23, 2011 12:46 am

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smallville wrote:

Chabbi wrote:

raa wrote:

3) Nope.

hope it's clear enough.

My concern is third item. Today i contacted my broker to buy some LDEV then he told me that no need to buy today u can buy on monday. even u buy on XR day u will entitled for rights. so don't get panic and buy today. I was surprised & i cancel my order too.

He was quite sure even we bought XR on day v will get the rights as well. Pls correct me

Cheerz

XR is excluding rights.. Even an office boy in a brokering firm would tell u the meaning of XR.. Mind you sharing the broker firm that messed up so mcuh?.. you shud immediately leave this fellow..
Telling something mistakenly is ok, any1 can make mistakes but knowing the meaning of this word and with the exp is the industry that's suisidel to have a broker like this

@smallville

Thats y i nvr consult my broker these things ... but unfortunately tht i hv to contact him due othr fact Sad

....

This is my second broker Smile

i think 1st was very lazy guy & this guy is somthing nut ..

Will see how future going to be Very Happy

....

@ Small if i bought rights from market do i get the additional right papers ?? we mostly get additional rights paper with allotment Smile

still ddnt bought rights from market .. i always try to entitle for rights Smile

If i got 2000 Rights frm mkt then any way i have to pay Rs. 25 for that two thousand knw .. except tht do i can apply for additional ??

Pls can u share the way of paying money for the rights bought from Mkt Smile

Cheerz