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:
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).
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.
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:
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REs are not regular equity shares. They’re a temporary instrument that either lets you apply for rights shares or sell them.
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Settlement is on a T+1 basis, and trades will be settled on a trade-for-trade basis.
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REs will only be in demat form.
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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.
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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:
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Apply for 25 rights shares by paying the price specified in the Rights Issue.
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Sell those 25 REs in the market before July 07, 2025.
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Do nothing and let the REs expire.