Suzlon Energy's rights issue opened on October 11 and will close on October 20. The board of directors of the company had set October 4 as the record date for the Suzlon Energy rights issue.
Wind power major Suzlon Energy would be able to pare its debt by Rs 583.5 crore with full subscription of its Rs 1,200 crore rights issue which opened on Tuesday, the company said.
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The issue will be open till October 20. The listing of new shares will be on November 3, while the tentative allotment date is October 31.
What is a rights issue?
When a company needs additional capital and keeps the voting rights of the existing shareholders proportionately balanced, the company issues rights shares. This gives the existing shareholders a pre-emptive right to buy new shares at a price that is lesser than the market price, according to Clear.
How to apply for it?
The company generally sends forms to every shareholder entitled to receive rights issues. This form can be submitted online as well as offline.
For online, there is Registrar and Transfer agent (RTA) website where investors can submit applications.
Here are the steps to apply for Suzlon Energy Rights Issue 2022 using Registrar's website:
Step 1: Visit the registrar's website.
Step 2: Go to the 'Rights Issue' section.
Step 3: Select Suzlon Energy Rights Issue 2022 from the dropdown.
Step 4: Enter Demat Account Number.
Step 5: Fill out the online application form.
Step 6: Validate and submit the application.
Additionally, investors can visit the brokerage account online and use the ASBA services option. There should be a 'rights issue' option available where they can fill in the quantity and submit the application.
About Suzlon's rights issue
In a notice to the stock exchanges, Suzlon Energy said the new shares have a face value of Rs 2, with a premium of Rs 3, so the total price share is Rs 5. All eligible shareholders can purchase the additional shares in the ratio of five shares for every 21 held in the right issue.
Suzlon will repay Rs 1,000 crore to the state-run REC from the rights issue proceeds. Of the Rs 2,800 crore 20-year REC loan, only Rs 800 crore is working capital facility and is priced at 19 percent.
Meanwhile, the shares of Suzlon Energy were trading 3.01 percent lower at Rs 7.42 on BSE at 11:47 am.
First Published: IST