Description

Trading in Rights Entitlements (REs) for renunciation of Patel Engineering Limited will commence from December 12, 2025 to December 16, 2025, with the rights issue opening December 12-19, 2025.

Summary

BSE has announced that trading in Rights Entitlements (REs) for renunciation of Patel Engineering Limited will be permitted on the exchange from Friday, December 12, 2025 to Tuesday, December 16, 2025. The Rights Issue itself will be open from December 12, 2025 to December 19, 2025. Trading will occur on a T+1 rolling settlement basis with trade-for-trade settlement, and REs will only be tradable in dematerialized form.

Key Points

  • Trading period for Rights Entitlements renunciation: December 12-16, 2025
  • Rights Issue period: December 12-19, 2025
  • Scrip Code: 751065, Scrip ID: PATELEG-RE
  • ISIN Number: INE244B20022
  • Market Lot: 1, Group: R
  • Settlement: T+1 rolling settlement on trade-for-trade basis
  • REs tradable in dematerialized form only
  • Trading members must inform clients about RE trading and include disclaimers in contract notes
  • Unsubscribed and unrenounced REs will lapse after issue closing date

Regulatory Changes

No new regulatory changes introduced. This circular follows existing framework for rights entitlements trading as outlined in previous BSE notices (notice no. 20200305-21 dated March 05, 2020 and notice no. 20200518-34 dated May 18, 2020).

Compliance Requirements

  • Trading members must inform all clients about commencement of trading in REs, mentioning the ISIN (INE244B20022)
  • Trading members must clarify that REs should not be mistaken for ordinary shares
  • Contract notes/bills containing purchase of REs must include a prominent disclaimer informing clients that:
    • Purchase of REs only gives right to participate in ongoing rights issue by making application with requisite money OR to renounce the REs
    • REs neither subscribed nor renounced before issue closing date will lapse and be extinguished
  • Trading members should refer to notice no. 20200305-21 (March 05, 2020) and notice no. 20200518-34 (May 18, 2020) for additional details

Important Dates

  • December 12, 2025: Rights Entitlements trading commences; Rights Issue opens
  • December 16, 2025: Last day for Rights Entitlements renunciation trading
  • December 19, 2025: Rights Issue closes; last date to subscribe or renounce REs (after which they will lapse)

Impact Assessment

Market Impact: Moderate. This creates a 5-day window for shareholders of Patel Engineering Limited to trade their rights entitlements if they do not wish to subscribe to the rights issue themselves. The trade-for-trade settlement ensures transparent pricing.

Investor Impact: Provides flexibility to existing shareholders by allowing them to monetize rights they don’t intend to exercise. However, investors must be aware of the short trading window (December 12-16) and the consequence that unrenounced/unsubscribed REs will lapse after December 19.

Operational Impact: Trading members need to ensure proper client communication and include mandatory disclaimers in contract notes to avoid confusion between rights entitlements and ordinary equity shares.

Impact Justification

Medium importance as it affects shareholders of Patel Engineering Limited who wish to trade their rights entitlements during a specific 5-day window. Impact is moderate as it provides renunciation opportunity but is limited to one company's rights issue.