Everything You Need to Know About the Suzlon Energy Ltd. Rights Issue

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.

Issue Details
Ex-Date October 3, 2022
Record Date October 4, 2022
RE Symbol SUZLON-RE
Ratio 5:21
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
On Application 1 1.50 2.50
One or more additional calls as may be decided by the company 1 1.50 2.50
Total 2 3 5

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.

How to apply for Suzlon Energy 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 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

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 FAQ’s on Rights Issue and Rights Entitlements here.

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How I can get right issue of suzlon energy

Krishna, if you have bought shares of Suzlon Energy on or before September 30, 2022, you will be eligible to recieve Rights Entitlements (REs), which you have to use for applying for rights shares. The issue opens for subscription on October 11.

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Hello Everyone,

I am relatively a basic and novice trader who is encountering a rights issue for the first time. As Suzlon Energy is now ex-date for RE, when can I buy the shares as shown in my demat account as part of existing shareholder?
Do I need to apply like to an IPO to purchase allotted entitlements? When can I go for the same?
Also, will these trade as normal Suzlon shares post 03-Nov’22 as there FV is Re.1 while normal one has Re.2?

Please help me in understanding above.

Regards,
-VC

RE (rights entitlement ) MUST be used either to sell during 11 to 14 October at bse/nse or apply for partly paid share during 11 to 20 October . application to purchase pp shares has to be from net banking website of your bank using ASBA or even physical ASBA by paying 2.50 per share . YES similar to ipo application from asba you have to apply . suppose you have 100 RE you can APPLY additional shares too .
Partly paid share will have separate listing till balance money 2.50 is called by co .
IF you do not act RE will be zero value and removed from your demat from 21 October .

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HDFC bank ASBA rights issue list is not showing Suzlon rights issue. It is showing other rights available. What can I do in this case?

@ShubhS9

Hii Sir,

My father got Suzlon RE in his Demat account. Now he want to apply but he has no net banking, So now can i apply through my net banking or not?

Hi guys can anyone help Ayush’s question? I have the same concern.

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Dear Ashwini,

Suzlon Energy Limited has announced a rights issue. Since you were a shareholder on the record date, you have received Rights Entitlements (RE) which will be visible on Kite with a Rs 0 buy average price.

The REs will only be traded till 14 October 2022. After the rights issue closes, the REs will be extinguished and removed from your holdings. In order to ensure that your REs don’t expire underutilized, you can either sell the REs till the last day of trading or you can apply for the rights shares by 20 October 2022.

The application can be made from the RTA’s portal or using net banking ASBA if your bank supports it. You can also apply offline by submitting an Application Form to the Designated Branch of the SCSB (Self Certificate Syndicate Bank). You can check the process in this post. Please ignore this email if you have already applied for the rights shares.

Regards,
Team Zerodha

Zerodha Broking Ltd., 153/154, 4th Cross, Dollars Colony, JP Nagar 4th Phase, Bangalore - 560078

I have received this maile then too

how much qty or bid i have to update in the form.

Aayush, HDFC Bank might not be providing the option to apply for Suzlon Energy rights issue. If you have another bank account and if they are providing it, you can apply from there.

The bank account you use need not be linked to your trading account. Just make sure it is in your name.

If not then, you will have to make offline application by submitting application form to branch of SCSB. You can download the form here.

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Application form third-party bank account is liable to get rejected.

He will have to make offline application by submitting application form to branch of SCSB. You can download the application form here.

The price will be fixed, this cannot be modified.

The quantity will depend on you. You can enter quantity equivalent to number of REs you hold, you will get guaranteed allotment for these.

You can also apply for additional quantity, the allotment for these will depend on issue subscription. If you don’t get the allotment, the amount will be refunded.

Thankyou for the help Shubh. Really appreciate it

Hey guys, I am a bit confused, Can you guys please explain me in detail? I am holding Suzlon shares so I got Suzlon RE shares in my demat account. As they are in the open market I bought more shares, So, now the total RE shares are lets say 5000. So, while applying do I have to bid for 5000 shares? If they get alloted. How many shares will I have in the end?
Also, now the RE shares are at 1.8 INR and the application bid is at 2.5 what does this mean? So, if buy a share at 1.8 and drop application through RTA at 2.5. What would be the final price of the share?
Will they have the premium amount of 3 INR added to the share price (which will be our profit ?) ?
Can anyone please explain?
Thank you ,
Adithya

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Yes, HDFC doesn’t have Suzlon RE listed to apply for under IPO section. All HDFC Sec customers will have to apply through manual application I believe.

Yes, you will have to make application for 5000 shares.

Once the rights shares are allotted, you will have these 5000 shares (partly-paid) plus the fully paid shares you hold of Suzlon Energy.

The amount paid for purchasing REs goes to the shareholder who should the REs in the market not the company. So this will not be counted towards the issue price.

The shares will be alloted to you at Rs. 2.5 and that will be the average price. You will have to account for premium paid for purchasing REs seperately.

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Hi, I hold 500 share of suzlon so on the basis of holding i received 119 REs. But i purchase additional quantity of 40000 REs dated 13.10.2022 at the rate 1.65 in open market. now what the treatment of additional quantity if i not apply for REs.

how to apply for RE of Suzlon energy

Mukesh, the process has been explained above. Please check the main post.

If you do not apply for the rights shares, you will lose the entire amount paid to purchase the REs. If you do not wish to apply for rights shares, you can also sell the REs in market on or before 14th October 2022.