Applying for Right Shares in Nepal has become a streamlined digital process thanks to the MeroShare platform. Unlike an IPO, where anyone can apply, Right Shares are offered only to existing shareholders of a company at a specific ratio (e.g., 1:1 or 1:0.5) and usually at a par value of NPR 100.
If you own shares of a company issuing “Rights,” here is your step-by-step guide to claiming them.
Prerequisites: What You Need First
Before you can apply, ensure you have the following:
- Existing Shares: You must have held the company’s shares before the Book Closure Date.
- MeroShare Account: An active login for meroshare.cdsc.com.np.
- CRN Number: Provided by your bank to link your bank account with your Demat.
- Sufficient Balance: Ensure your bank account has enough funds to cover the total cost of the shares you are applying for.
Open the MeroShare website or app. Select your Depository Participant (DP), enter your Username, and Password.
Once logged in, look at the dashboard menu (usually on the left side) and click on the “My ASBA” tab.
3. Select “Current Issue.”
Under the My ASBA section, click on “Current Issue.” You will see a list of available IPOs, FPOs, and Right Shares. Look for the company name followed by “Right Share” and click the “Apply” button next to it.
4. Verify Eligibility and Enter Units
The system will automatically show you how many units you are eligible to apply for based on your holdings at the book closure date.
- Units Applied: Enter the number of units you wish to buy (up to your maximum eligibility).
- Bank: Select your linked bank account from the dropdown.
- CRN Number: Type in your C-ASBA Registration Number.
5. Submit and Confirm
Click “Apply.” You will be asked to enter your 4-digit Transaction PIN to authorize the request. Once submitted, you will see a message saying “Share Applied Successfully.”
6. Verification
Your bank will now block the required amount in your account. You can track the status by going to “Application Report” in the My ASBA tab. Once the bank verifies your funds, the status will change from “Unverified” to “Verified.”
Key Points to Remember
- The Ratio Matters: If a company announces a 1:1 right share and you own 50 units, you are entitled to buy exactly 50 more units at NPR 100.
- Don’t Miss the Deadline: Right share issues are open for a specific period (usually 21 to 35 days). If you don’t apply, your right to those shares expires.
- Unsubscribed Shares: If you (or others) don’t apply for your entitled shares, the company will later sell those remaining shares through a Stock Auction, which is open to the general public (often at a higher price).
- Check the Pipeline: You can stay updated on upcoming rights by checking the SEBON Right Share Pipeline to see which companies are awaiting approval.
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Frequently Asked Questions (FAQ)
Only those investors who purchased and held the company’s shares for at least one trading day before the Book Closure Date are eligible. If you buy the shares after the book closure, you will not receive the “right” to the new shares.
Can I apply for more units than my eligibility?
No. In the initial offering, you can only apply for the number of units you are entitled to based on the specific ratio (e.g., if you have 100 units and the ratio is 1:1, you can apply for exactly 100 units). However, you can buy extra shares later if they go to auction.
What happens if I miss the deadline?
If you don’t apply within the given timeframe (usually 21–35 days), your “right” to those shares expires. The company will then take all the unsold (unsubscribed) shares and sell them to the general public through a sealed-bid auction, often at a higher price than the initial NPR 100.
No, it is not mandatory. However, if you don’t apply, your overall ownership percentage in the company will be “diluted,” and you miss the chance to buy shares at par value (NPR 100) when the market price might be much higher.
After the application deadline, the company completes the allotment process. It typically takes 30 to 45 days for the shares to be credited to your Demat account and listed on NEPSE for trading.
