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?
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 .
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.
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.
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.
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
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.
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.
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.
hi…A i am a novice to trading…i need the process how to keep the RE shares of Suzlon those were credited to my DEMAT account as partly paid. what is the process to pay fully for these allotted shares in my demat. if iclick on Buy option, it is asking me the number of share to be bought. i have 2471 partly paid shares. do i have to enter 2471 as the number of shares to buy?? or what shall i do here.
"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. "
saw this text in your article above. That means, we get a notification from the company that one has to pay the remaining amount of the Partly paid RE shares?
and another confusion is> do we get this notification between 11th and 20th October?
I have done it through HDFC net banking. On the desktop website of your netbanking account login go to request section and in that you have a IPO and rights issue section. There you can bid. I have done it.
