Suzlon Energy's rights issue comprises of 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. Suzlon promoters and promoter group had confirmed their participation and said they will be fully subscribing to the extent of their rights entitlement.
The company plans to use the funds raised for repayment or pre-payment of a portion of certain outstanding borrowings availed by the company and its subsidiaries and for general corporate purposes. Inga Ventures is the lead manager to the issue.
Under the rights issue, fresh equity shares are offered by a company to those who are existing shareholders. Further, these existing shareholders get the right to buy fresh shares using their 'Rights Entitlement'.
Suzlon is engaged in manufacturing in the wind component manufacturing segment as per capacity and is one of the top renewable O&M service providers in India, as per capacity serviced. The stock is down about 12% in 2022 (YTD) so far.
Addressing a virtual press conference last week, Suzlon Energy Ltd's Chief Financial Officer (CFO) Himanshu Mody had said that the company would be able to pare its debt by ₹583.5 crore, if its rights issue worth ₹1,200 crore gets fully subscribed. Mody emphasised that the company would have much leaner, healthier and better balance sheet after the issue and there will be no decline in the promoters' holding after the issue.
Meanwhile, Suzlon on Tuesday said it has bagged an order to supply 23 wind turbines totalling 48.3 MW from Adani Green Energy. Suzlon will install 23 units of their wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each.
