Corporate Action - Rights Issue - Piramal Pharma Limited


Piramal Pharma Limited has made a public announcement regarding a Rights Issue comprising of 12,96,29,630 equity shares, with a total value of up to Rs. 1,050 crores. The subscription for the rights issue will be open from August 8, 2023 to August 16, 2023.

Investors or traders who currently possess shares of Piramal Pharma Limited as of August 2, 2023 (Record Date) will be eligible to receive Rights Entitlements (REs). These REs will be tradable on the stock exchanges for a limited period and will then be extinguish. You have the option to utilize these REs to apply for the rights shares of the company or, if you choose not to participate in the Rights Issue, you can sell them in the market. For further details, please refer to the company’s official announcement here. Note that trading in REs is allowed only for a specific period (referred to as the trading window) on the stock exchange(s). Once the right entitlement trading is suspended, one can renounce their rights only through off-market renunciation.

The Rights Issue has been set at a ratio of 5:46. This implies that for every 46 share(s) of Piramal Pharma Limited held by a shareholder, they will be entitled to receive 5 REs.

The issue price of the share via the Rights Issue is Rs. 81.00, which must be paid to the company.

REs are generally credited to the DEMAT account before the opening date of the issue. You will receive a notification from CDSL (via email and SMS) when your REs gets credited to your DEMAT account.

Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using the below methods:

1… Online ASBA (Applications Supported by Blocked Amount). If your bank supports it, like an online IPO application.
2… Offline (physical ASBA) if your bank does not support online ASBA. For this, you would need to fill out an application form which you would have received from the RTA (Registrar and Transfer Agent) of the company via email/courier/speed post. You will have to fill out the form and submit it at a Self-Certified Syndicate Banks (SCSBs) branch.
3… Online RWAP facility provided by the company RTA.

You will need to enter your Dhan Demat account’s Beneficiary Owner ID which is a 16-digit number which can be found in the Profile section while applying for the rights issue.

If you decide not to apply for the rights issue, your purchased REs will expire, and you will lose the premium you paid to acquire them. These REs are issued as temporary Demat securities, and they will become void if not exercised or renounced once the trading window is closed.

You can read more FAQs on Rights Issue and Rights Entitlements here. What you think about this Rights Issue?

Update: Rights Issue of Piramal Pharma Ltd stands extended for additional one (1) day and will now close on August 17, 2023. Refer here.