How to use Rights Entitlement (RE)?

Once Rights Entitlements (REs) are credited to your demat account, you have three practical options:

1. Apply for Rights Shares : Use your REs to apply for new shares at the rights issue price through ASBA/net banking or your broker. On allotment, REs convert into equity shares.
2. Sell (Renounce) the REs: If you don’t want to invest more, you can sell your REs on the stock exchange during the RE trading period and realize their value.
3. Buy More REs: You can purchase additional REs from the market if you want to apply for more rights shares than your original entitlement.

Note : If you do not opt for any of the above, the REs will expire after the issue closes and become worthless.