How to apply for Indiabulls Housing Finance Rights issue?

You are eligible to receive the Right Entitlement (RE) of Indiabulls Housing Finance Limited only if you hold the shares of Indiabulls Housing Finance Limited on or before 1st Feb 2024 (PDF). The IBUL-RE will be temporarily traded on the stock exchange on 7th and 8th Feb before it gets extinguished eventually. You can either use the REs to apply for the rights issue or sell these REs in the market. To learn more about Rights issues, see What is a Rights issue?

The issue details are as follows:

RE Trading period	February 7, 2024 to February 8, 2024
Rights issue period	February 07, 2024 to February 13, 2024
Ex-date	February 01, 2024
Record date	February 01, 2024
Ratio	1:2
Issue Price	₹150 per share (₹50 on application)
Tentative Date of Allotment for rights shares	February 22, 2024
Tentative date of credit	February 26, 2024
Tentative date of listing	February 28, 2024

This rights issue is for partly-paid shares of the company. In other words, if you decide to apply, you will need to pay for the rights shares as per the below schedule:

After receiving the Rights Entitlements (REs) from Indiabulls Housing Finance Limited or purchasing them from the market, you can apply for the rights shares through ASBA (Applications Supported by Blocked Amount) if your bank supports it. Alternatively, the company's Registrar and Transfer Agent (RTA) will send a Composite Application Form (CAF) via courier to those who cannot apply online. The filled form can be submitted at a Self-Certified Syndicate Bank (SCSB) branch (WEB). The forms can also be downloaded from the BSE and NSE websites by visiting bseindia.com/publicissue.html and nseindia.com/market-data/all-upcoming-issues-ipo.

The rights issue details, such as the Rights Issue ratio and the Book closure date, will be mentioned in the application form. The application form requires the following details to be filled in:

1. Cheque/DD details (non-ASBA).
2. Select NSDL if the DP starts with IN. Select CDSL if the DP ID is completely numeric.
3. PAN number. If the account is a joint account, the PAN of the second holder should also be filled in.
4. DP details. (DP ID and the beneficiary number can be found under the profile section of the Console).
5. Signature. (Signatures of both account holders if it is a joint account).

Once the form is filled, it can be submitted to any SCSB branch. The list of banks can be found on the application form. For a step-by-step guide on how to apply for a rights issue, visit tradingqna.com/t/how-do-i-apply-for-the-rights-issue-of-piramal-enterprises/33380/3.

What will happen to my purchased holding of RE shares if I do not apply for the rights issue?

Your REs will lapse, and you will lose the premium paid to acquire them. The RE will be in the form of temporary demat securities, which will lapse if not renounced/exercised once the trading window is closed.

I don’t have the shares, but I bought REs. Am I still eligible to apply for the rights issue?

If you have bought REs but don’t have shares, you’re still eligible for the rights issue. You may apply for the rights shares through the RTA’s portal or net banking ASBA if your bank allows it. If you don’t take any action and let the REs remain in your Zerodha account, they will lapse after the issue.

You can read more FAQs on Rights issues and Rights Entitlements here.

You can check out this discussion in TradingQ&A to know more about Indiabulls Housing Finance rights issue.