Suzlon Energy Ltd. (SUZLON) has announced a rights issue of equity shares aggregating up to Rs. 1,200 crores.
Suzlon Energy will issue Right Entitlements (RE’s) to anyone who holds its shares as of October 4, 2022 (record date). These RE’s will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the RE’s to apply for the rights shares of Suzlon Energy 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 have bought the shares on or before September 30, 2022. The ex-date is October 3, 2022.
|Ex-Date||October 3, 2022|
|Record Date||October 4, 2022|
|Issue Price||₹ 5|
|Issue Period||October 11, 2022 to October 20, 2022|
|RE Trading Period||October 11, 2022 to October 14, 2022|
|Tentative Date of Allotment||October 31, 2022|
|Tentative Date of Listing||November 7, 2022|
This is a partly-paid issue, meaning at the time of application you only have to make part payment.
|Amount payable per equity share||Face Value||Premium||Total|
|One or more additional calls as may be decided by the company||1||1.50||2.50|
If you continue holding partly-paid shares of Suzlon Evergy when the company makes a call for the balance payment, you will be liable to pay the balance sum. Alternatively, if you sell the partly-paid shares, the buyer will be liable to pay the sum.
Once you either receive the REs from the company or purchase them from the market, you can apply for the rights shares using Netbanking ASBA or offline by submitting a Application Form to the nearest branch of SCSB (Self Certified Syndicate Bank). You can check the process in this post .
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.
If you face any difficulties applying for the rights issue, you can get in touch with the RTA at [email protected] or at +91 40 6716 2222
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.
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 FAQ’s on Rights Issue and Rights Entitlements here.