MProfit allows you to properly manage rights entitlements and partly paid up shares, with proper capital gain computation. Follow the process as per the example below.
Here is an example for Reliance Rights Entitlements purchased from the market and how you can manage the purchase of shares using the same rights entitlement in MProfit.
- If you have purchased the rights entitlements from the market, you can import all transactions for the rights entitlements directly from your contract note.
Alternatively, you can also manually add them by clicking + > Add Transaction
- In this example, there is a purchase of 100 Reliance Rights Entitlement shares from the market
- Now, when you make the payment for Reliance Rights Partly Paid shares, you will need to load the cost for the purchased Reliance Rights Entitlement to the cost for the Reliance Rights Partly Paid shares.
To do so, use the Merger option to merge the Rights Entitlements to the Partly Paid shares..
First, right click on Reliance Rights Entitlement. Next, click Other Transactions > Add Merger
- In the subsequent screen, click the + (Add New) button for Merging Into and select 'Reliance Ind Partly Paid'.
Enter the Date of the merger as any date before the date of purchase for the Reliance Partly Paid shares.
Bal. Shares after Merger quantity will be stay the same (as the number of partly paid shares you purchase).
The cost of your Reliance Rights will now have been added to that of the Reliance Partly Paid shares.
- Now, for adding the first installment payment, right click on the stock Reliance Ind Partly Paid and select Add Off-Market Transaction (IPO, Installment Payment...).
- In the subsequent screen, select Trans. Type as 'Installment Payment', enter other details, as applicable and save the transaction.
- Your closing amount for Reliance Partly Paid shares will now be up-to-date with the Installment Payment transaction.
- Once all your installment payments are done for the partly paid up shares and the partly paid shares are converted to fully paid up shares, you can use the merger option in MProfit to merger Partly Paid up shares to fully paid up shares of the original parent company.
In the above example, you can use the Merger option to merge Reliance Ind Partly Paid with Reliance Industries.