All ITM Crude Option contracts on 17th October 2022 will be converted into Futures contracts. To avoid square-off, ensure that you maintain sufficient margin for...
Read more
What does this mean?
A company announces a Rights Issue to invite existing shareholders to buy more shares, usually at a discounted price. These shares are known as Rights Shares.
After the Rights Issue is announced, the company then credits its existing shareholders’ Demat Accounts with REs (Rights Entitlements).
These REs are not the Right Shares but the benefit given to existing shareholders to apply for the Right Shares. If shareholders do not wish to apply for these Rights Shares, they can even trade these REs in the market until a particular date.
To learn more, click here.
What does this mean for Suzlon Energy shareholders?
Existing shareholders of Suzlon Energy company (as of record date 4th October 2022) have 2 options -
- They can use their REs to apply for more shares of Suzlon (in proportion to their existing shares - 5 for every 21 shares held) at a price of ₹5 per share.
- If they do not wish to apply for more shares, they can even sell their REs in the market.
Note: REs which are neither subscribed by making an application with requisite application money nor renounced, on or before the Issue Closing Date shall lapse and shall be extinguished after the Issue Closing Date.
What dates should one keep in mind?
Last date to apply (Issue Closing Date): 20th October 2022
If you’re interested in applying for the right shares, you can apply on or before this date
Last trading date for RE - 14th October 2022
If you do not wish to apply for the rights shares, you can trade your REs in the market on or before this date.
Date when Right Shares will be credited - 1st November 2022
Date of listing of Right Shares - 3rd November 2022
How To Apply for Rights Shares?
You can apply for Suzlon Energy Rights Issue 2022 in 2 ways:
1) Online through ASBA (Applications Supported by Blocked Amount) if your bank supports it just like you do for an IPO.
2) Offline by filling the Composite Application Form (CAF) received in your courier from the company’s RTA and then submitting it at a Self-Certified Syndicate Banks (SCSBs) branch.
Refer to the Exchange circular here:
