Infibeam Avenues Announces Rights Entitlements – Here’s What Investors Should Know

Market Announcements 📢
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Dear Investors,

Infibeam Avenues Ltd. has announced a Rights Entitlement (RE) as part of its upcoming Rights Issue, and it’s important to understand how this affects their holdings and the actions you may need to take.

Let’s break down what this corporate action means and how it impacts your portfolio.

What Is a Rights Entitlement (RE)?

A Rights Entitlement (RE) is a temporary security that gives eligible shareholders the right—but not the obligation—to participate in a Rights Issue. In a Rights Issue, the company offers additional shares to existing shareholders at a discounted price to raise capital.

In this case, Infibeam Avenues Ltd. is offering its shareholders the opportunity to subscribe to additional shares through a Rights Issue.

Key Dates to Remember:

Event Date
Trading Window for REs July 03, 2025 to July 07, 2025
Rights Issue Window July 03, 2025 to July 11, 2025
Ratio You will get 67 new shares for every 267 shares you already hold.
Face value ₹1 per share
Issue Price ₹10 per share Breakup: ₹5 to be paid at the time of application, ₹5 will be called later (Final Call).
Scrip Code 751005
Scrip ID INFIBE-RE
ISIN INE483S20012
Record date 20/06/2025

Example:

If you hold 267 shares of Infibeam on the record date (June 26), you will be entitled to apply for 67 additional shares at ₹10 each. However, you will only pay ₹5 per share upfront, and the remaining ₹5 will be paid when the company makes the final call.

How Does This Impact Your Portfolio?

Let’s say you already hold shares of Infibeam Avenues Ltd. as of the record date( 26/06/2025). You will receive REs in your demat account in proportion to your existing shareholding.

You can now:

:white_check_mark: 1. Subscribe to the Rights Issue

Use your REs to apply for the new shares at the discounted price offered by the company during the Rights Issue period (July 03 to July 11, 2025).

:counterclockwise_arrows_button: 2. Renounce (Sell) Your REs on the Market

If you don’t wish to subscribe, you can sell the REs on the stock exchange between July 03 and July 07, 2025, just like regular shares. The buyer of the REs can then apply for the rights shares.

:warning: 3. Do Nothing (Not Recommended)

If you neither apply for shares nor sell your REs, they will lapse and become worthless after the issue closes. This means you lose the value of the entitlements.

Important Points to Keep in Mind:

  • REs are not regular equity shares. They’re a temporary instrument that either lets you apply for rights shares or sell them.

  • Settlement is on a T+1 basis, and trades will be settled on a trade-for-trade basis.

  • REs will only be in demat form.

  • If you’re buying REs on the market, you still need to apply for the rights shares separately using the REs and paying the application money.

  • Once the Rights Issue closes on July 11, 2025, any unused REs will be extinguished.

Example for Better Understanding:

Suppose you hold 100 shares of Infibeam Avenues. The company announces a 1:4 rights issue. You receive 25 REs in your demat. You now have 3 choices:

  • Apply for 25 rights shares by paying the price specified in the Rights Issue.

  • Sell those 25 REs in the market before July 07, 2025.

  • Do nothing and let the REs expire.

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I have some shares of Infibeam. I didn’t that I could see RE, so I am left with option to buy through RE. Which website will I need to go and use my RE to buy shares? I had bought shares using PayTm Money, but there is no such option to exercise RE on that portal. Please guide.

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Hi @R_U,

If you’ve received REs (Rights Entitlements) in your demat account but don’t see an option to apply through Paytm Money, don’t worry—you still have a way to apply.

Here’s how you can apply for the rights shares:

You need to visit the Registrar’s portal handling the rights issue. In the case of Infibeam Avenues, the registrar is Alankit.

:backhand_index_pointing_right: You can apply online via this link (https://rights.alankit.com):

Steps to Apply for Rights Shares Using REs:

  1. Visit https://rights.alankit.com

  2. Select the company (Infibeam Avenues Ltd).

  3. Enter your DP ID/Client ID or PAN number.

  4. Enter how many REs you want to apply for.

  5. Make payment via net banking or UPI.

:white_check_mark: Note: Ensure your REs are visible in your demat account before applying. If you miss applying before July 11, 2025, the REs will lapse and become worthless.