According to the BSE, as on Thursday, October 20, 2022 at 12 noon, Suzlon Energy Rights Issue has been oversubscribed on the last day of the issue as it has been allotted 265 crore shares (out of 240 crore shares offered through rights issue). Bids have been received. The rights issue opened last week on Tuesday, October 11. Shares of Suzlon Energy were trading down more than 7%. 8.5 each on BSE in afternoon deals.
Suzlon EnergyThe rights issue comprises partly paid-up equity shares for cash at a price of up to Rs 240 crore 5 per share (inclusive of premium of Rs.) 3 per rights equity share) inclusive 1,200 crores. Suzlon’s promoters and promoter group had confirmed their participation and stated that they would fully subscribe to the extent of their rights.
The Company plans to utilize the funds raised for repayment or prepayment of certain outstanding borrowings taken by the Company and its subsidiaries and for general corporate purposes. Inga Ventures is the lead manager of the issue.
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’.
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. The stock is down about 12% so far in 2022 (YTD).
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. 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.
Meanwhile, Suzlon on Tuesday said it has received an order to supply 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 each.
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