Heritage Foods Ltd

You have to look at the Letter of Offer. I could not find one for Heritage Foods – don’t think they have filed even a Draft LOF with SEBI. Let me know if they have. If they do, search for ‘Basis of allotment’ and you will find the answer.

I do not think unsubscribed rights can be appropriated by the Promoters at their own discretion if there are other applicants as well. I am no expert, but experience suggests it will certainly fall afoul of SEBI’s regulations.

I checked the LOF for two recent rights issue – Suzlon and Sundaram Finance Holdings Ltd. and how they will handle allotments to folks who have subscribed to more than what they were entitled to.

Here’s what each one says (from their respective LOFs):

Suzlon:

Sundaram Finance Holdings Limited

Very unlikely that you can have a rights issue manager saying that it will allocate it preferentially to the Promoters.

I haven’t gone through the all the posts, just the ones that ask how additional subscriptions will be handled; and will the Promoter corner all unsubscribed portion. I think the Promoter, in order to give confidence may say that they will apply so that any unsubscribed portion will also get subscribed by them.