Everything you need to know about Orient Green Power Company Limited Rights Issue 2024

Corporate actions Rights issue
1

Orient Green Power Company Limited (GREENPOWER) has announced a rights issue of 19,23,07,692 equity shares aggregating up to Rs. 250.00 crores. The rights issue opens for subscription on August 27, 2024, and closes on September 13, 2024.

Anyone who holds shares of Orient Green Power Company Limited as of August 13, 2024 (record date) will be eligible for receiving Rights Entitlements (REs). These REs will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the REs to apply for the rights shares of the company or you can sell them in the market.

You can check the announcement from the company here.

You will be eligible to receive Rights Entitlements (REs) if you’ve bought the shares on or before August 12, 2024. The ex-date is August 13, 2024.

Rights issue details

Issue Period August 27, 2024 - September 13, 2024
RE Trading Period August 27, 2024 - September 09, 2024
RE Symbol GREEN-RE1
Issue Price Rs. 13 per share
Ratio 10:51
EX-date August 13, 2024
Record Date August 13, 2024
Tentative Date of Allotment for rights shares September 19, 2024
Tentative Date of Credit of rights shares September 24, 2024
Tentative Date of Listing for rights shares September 27, 2024

How to apply for Orient Green Power Company Limited Rights Issue?

Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using the below methods;

You can check the application process here.

You will need to enter your Demat account’s Beneficiary Owner ID which is a 16-digit number while applying for the rights issue.

The option to apply for rights shares through the RTAs portal is not available for this rights issue.

What will happen to my purchased holding of RE shares if I do not apply for the rights issue?
Your REs will lapse and you will lose the premium paid to acquire them. The RE will be in the form of temporary demat securities which will lapse if not renounced/exercised once the trading window is closed.

I don’t have the shares but bought REs, am I still eligible to apply for the rights issue?
In case you have bought REs but don’t have shares, you’re still eligible for the rights issue. You may apply for the rights shares either through the RTA’s portal or via net banking ASBA if your bank allows it. If you don’t take any action, and let the REs remain in your Zerodha account, they will lapse after the issue.

You can read more FAQs on Rights Issue and Rights Entitlements here.

4 Likes
2

Hi,
I am not an Existing shareholder of Orient Green Power Company, so I did not recieved RE shares.
Today GREEN-RE1 got listed on Stock Exchanges and Trading at Discount.

If I brought RE Shares from Market, Suppose I brought 50 RE Share at Price:Rs. 6.5.
Total Price = 6.5* 50 =Rs. 325.

Queries:

  1. While Filing for ASBA Application, do I need to put same Price (Rs. 325) to get blocked from my bank account as well?
  2. As I have already paid to buy RE at exchange, so the amount blocked by ASBA will get released once RE shares got alloted to Demat account?
  3. Without buying RE at exchange , Can I directly fill ASBA form, will it guarantee the share allotment via ASBA directly?
3

Hi @Abhilash_Patil , the price you paid to buy REs in the secondary market is separate from the amount required to apply for the rights, which will be blocked in your bank account through ASBA.

Here, the issue price is Rs. 13 per share, and if you are applying for 50 shares, Rs. 650 (13 * 50) would be blocked.

The amount blocked via ASBA will be based on the number of shares you’re applying for and will be tied to the REs held in your demat account. This amount won’t be released, it will be deducted upon allotment, and the shares will be credited to your demat on the allotment date.

The RTA will verify your demat account for REs before allotment. Therefore, you must have the REs in your demat account to be eligible to apply for the rights issue. Simply filling out the ASBA form without holding REs will not guarantee allotment.

5

So, overall is it good to inject more funds? No red flags or anything? :thinking:

The company did have a 6 cr profit last quarter and then the RE money will mainly go towards loan repayment and a Solar Power Project in Tamil Nadu.

6

Hi

Have got 50 re of orient in my demat account, currently its trading at 6.4, when i am applying through asba issue price is 13, so will the amount blocked be 50x13, and what will happen to the re which is showing in demat account at Rs.6.4, do i need to sell that off, little confused, why cant i buy the RE at 6.4rs

Regards

7

Yes, the amount blocked will be 50x13 = 650.

As mentioned earlier, the RTA will verify your demat for REs before allotment. Hence, you must have the REs in your demat account to be eligible to apply for the rights issue.

For existing shareholders who received REs, applying for the rights issue means paying Rs. 13 per share. If you purchased REs in the secondary market at Rs. 6.4, the total cost per share would be 19.4, bringing to a slight discount of 6%, depending on the market price.

Also, if you were allotted REs as an eligible shareholder and choose not to apply for the rights shares, you can sell the REs before the trading window closes. If you don’t sell or apply, the REs will lapse, and you’ll lose the premium value of the REs that were allotted to you.

8

Good morning
Can you guide me green re1 share how can i buy i apply 150 share already but write now does not show in screen

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Hi @Bhavesh_Dhamat If you’ve applied for the rights issue through ASBA or an offline application, you’ll need to wait for the shares to be allotted. The tentative allotment date is September 19, 2024. The REs won’t show on Kite as the trading window closed on September 09, 2024.

10

Could you tell me in brief how to buy RE via netbanking step by step as the last date is coming soon and i have no early experience related to this.

11

The window to apply for Orient Green Power Rights Issue closed on - September 13, 2024. However please be informed that you can apply for Rights issue from your internet banking platform ASBA mode, similar to the way you apply for IPOs.

As every bank would have a different interface, hence the steps involved will also differ. Hence it is recommended to reach your bank’s customer support to get the step-by-step guide.

You can also check the brief process in this post