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we have shares of vineet lab. there is right issue . please suggest shares

Asked by CNI Follower · 2 months ago · 27-12-2025

Vineet Laboratories has indeed announced a rights issue. Key terms are:

- Record date: 23 December 2025 (economictimes.indiatimes.com)

- Issue period (tentative): 1 January 2026 to 21 January 2026 (prysm.fi)

- Rights ratio: 13 Rights Equity Shares for every 12 shares held on the record date (prysm.fi)

- Rights issue price: ₹30 per share (₹10 face value + ₹20 premium), payable fully on application (prysm.fi)

As on today (27 December 2025), the stock is already ex-rights. That means:

- Buying VINEETLAB now will not give you rights entitlement for this issue.

- Only the shares you already held on 23 December 2025 qualify.

1. How many rights shares you are entitled to

The formula is:

> Entitlement = (Number of shares held on 23 Dec 2025) × (13 / 12)

> Fractions are usually rounded down and the fractional part handled by the registrar.

Examples (for illustration only):

- If you held 120 shares → 120 × 13/12 = 130 rights shares.

- If you held 300 shares → 300 × 13/12 = 325 rights shares.

- If you held 75 shares → 75 × 13/12 = 81.25 → you would typically get 81 rights shares; the 0.25 part is handled as per Letter of Offer.

You can check your exact Rights Entitlement (RE) in your demat; it will appear as a separate line item (e.g. “VINEETLAB-RE” or similar) around the issue opening.

2. What you can do with your rights

You effectively have three choices:

1. Subscribe fully to your entitlement

- Pay ₹30 per rights share for all eligible RE.

- Useful if:

- You are positive on Vineet Laboratories’ long-term prospects.

- You are comfortable increasing your exposure and investing additional capital.

- Rights price is at a discount to the recent market price (around mid–₹40s earlier in December; please check your trading platform for the latest price). (business-standard.com)

- This helps you avoid dilution of your percentage holding.

2. Sell (renounce) your Rights Entitlement in the market

- If you do not wish to put in more money, you can sell your RE units on the exchange within the renunciation window (tentatively up to 16 January 2026 for on-market, 20 January 2026 for off-market, subject to final confirmed dates in the Letter of Offer). (prysm.fi)

- You will receive whatever price the market offers for the RE and avoid letting them lapse worthless.

- This partially compensates for dilution without adding more capital.

3. Partly subscribe, partly sell RE

- You can subscribe to some portion of your entitlement and sell the rest, balancing:

- Cash availability

- Your risk appetite and view on the company

If you do nothing, the rights entitlements will lapse after the issue closes and you:

- Will not get new shares.

- Will still suffer dilution because total shares outstanding will go up from ~92 lakh to ~192 lakh on full subscription. (prysm.fi)

3. How to decide in practical terms

This is a framework, not a direct recommendation:

1. Compare prices:

- Check current VINEETLAB market price in your broker terminal.

- If market price is well above ₹30 and you are constructive on the company, subscribing is normally attractive from a pure pricing angle.

- If market price is near or below ₹30, then the benefit of subscribing becomes more dependent on fundamentals and your conviction.

2. Evaluate fundamentals & purpose of fund-raise:

- Read the Letter of Offer (from BSE/NSE site) to see:

- Use of proceeds (capex, debt repayment, working capital, etc.)

- Recent financial performance and risks.

- Rights issues used for reasonable growth / deleveraging can be positive; those only to plug weak cash flows are more risky.

3. Assess your own exposure and risk:

- If Vineet already forms a large % of your portfolio, you may avoid over-concentration – maybe sell some RE or do partial subscription.

- If your position size is small and you have strong conviction, full subscription may be reasonable (as an example approach, not advice).

4. Operational steps

- Verify that Rights Entitlements are credited in your demat.

- Apply for rights through:

- Net-banking ASBA rights section of your bank, or

- Your broker’s rights issue module / R-WAP (Registrar website) as specified in the Letter of Offer.

- Ensure application and payment are completed well before 21 January 2026 (issue close), and any sale of RE is done before the renunciation deadline.

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Important: I cannot see your exact holding quantity or risk profile, so this is not a direct “buy/sell” call, but a process to help you decide how many rights shares to take up using your own judgement and your advisor’s inputs.

If you have any further queries, please connect with us on 022-6290-10141 (Timings : 09.00 AM to 05.00 PM) or you can email us on info@cniinfoxchange.com