As of 5 PM on Wednesday, October 19, 2022, according to BSE data, the rights issue of Suzlon Energy has received bids for 216 crore shares (out of 240 crore shares offered through rights issue). The rights issue that opened last week on Tuesday, October 11, 2022, will end tomorrow, Thursday, October 20, 2022.
Suzlon shares jumped nearly 20 per cent today 9.24.
Under a rights issue, a company offers new equity shares to those who are existing shareholders. In addition, these existing shareholders get the right to buy new shares by using their ‘Rights Entitlements’.
Company up to 240 crores partly paid-up equity shares for cash. will issue at the cost of 5 per share (including premium of Rs.) 3 per rights equity share) inclusive 1,200 crores.
Suzlon’s Promoters and Promoter Group have confirmed their participation and will fully subscribe to the extent of their entitlement.
Suzlon Energy The said money raised through the issue would be used for repayment or prepayment of certain outstanding debts taken by the company and its subsidiaries and for general corporate purposes. Inga Ventures is the lead manager of the issue.
Suzlon is engaged in manufacturing in the wind component manufacturing segment by capacity and is one of the top renewable O&M service providers in India by capacity to service.
Addressing a virtual press conference last week, Suzlon Energy Limited’s Chief Financial Officer (CFO) Himanshu Modi had said that the company would be able to reduce its debt. 583.5 crore, if its rights are worth the issue 1,200 crores full subscription is available.
“Suzlon Key” 583.5 crore loan to be repaid with the assumption of full membership of The rights issue of Rs 1,200 crore opened on Tuesday. The total debt of the company was 3,200 crore by the June quarter 2022-23 and the company will be able to repay the remaining debt in the next eight years,” Modi said.
Modi emphasized that the balance sheet of the company would be leaner, healthier and better after the issue and there would be no dip in the promoters’ stake post the issue.
Suzlon on Tuesday said it has received orders for the supply of 23 wind turbines totaling 48.3 MW from Adani Green Energy.
Suzlon will install 23 units of its wind turbine generator (WTG) with a hybrid lattice tubular (HLT) tower and a rated capacity of 2.1 MW, a company statement said.
The project is located at Mandvi, Kutch Gujarat and is expected to be commissioned in 2023.
The order is a double order from Adani Green Energy and is in addition to the existing 226.8 MW order, as announced on 13 August 2021.
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