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NEW DELHI: Wind turbine manufacturer Suzlon Energy’s ₹1,200 crore rights issue opened for subscription on Tuesday. The issue will close on 20 October.
The company will issue up to 240 crore partly paid-up equity shares for cash, at a price of ₹5 per share, including a premium of ₹3 per rights equity share, aggregating to ₹1,200 crore. The entitlement ratio for the rights issue is 5:21–five shares for every twenty one equity shares held by eligible shareholders of the company–as on the record date of 4 October, according to a company statement.
The proceeds of the issue will be used to pare outstanding debt of the company, which in turn will strengthen the balance sheet, reduce interest cost outgo, and improve profitability.
“This in turn will also unlock working capital for the company to further increase its project execution. As per the Letter of Offer, the company currently has ₹3,272 crores of debt, part of which will be paid off using the proceeds of the rights issue,” the company said.
It added that the rights issue does not have a minimal threshold of subscription; the company will be able to use the proceeds raised through the rights issue irrespective of subscription level.
“The promoters and promoter group have re-confirmed their participation in the upcoming rights issue, and also declared that they will be fully subscribing to the extent of their rights entitlement,” added the release.
Earlier this month, Suzlon Energy had said its promoters had reconfirmed their participation in the rights issue, after the death of its founder and CMD Tulsi Tanti.
Dilip Shanghvi has also confirmed his intention to fully participate in the rights issue by subscribing for additional shares, as per a disclosure filed with the stock exchanges.
Suzlon has about 13 GW of installed capacity in India as on 30 June, 2022. It also has an installed capacity of 6 GW outside India, aggregating to a global installed capacity of 19 GW and has an order book of 700 MW in place for execution.
“The company expects growth to be driven by the Commercial & Industrial (C&I) segment, which is gaining strong momentum due to wind energy being critical for high PLF projects,” the press release said.
It said that wind repowering is also expected to drive nearly 20 GW of capacity till 2030, as existing wind capacities would need rebuilding.
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John Miller has been writing about science, gaming, and tech culture for over a decade. He’s a top-rated reviewer with extensive experience helping people find the best deals on tech and more.
