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As of 5 pm on Wednesday, October 19, 2022, Suzlon Energy’s rights issue has already received bids for 216 crore shares (out of the 240 crore shares offered via the rights issue), as per the BSE data. The rights issue which opened last week on Tuesday, October 11, 2022 will conclude tomorrow, Thursday, October 20, 2022.
Suzlon shares today zoomed nearly 20% to ₹9.24.
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’.
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.
Suzlon promoters and promoter group have confirmed their participation and they will be fully subscribing to the extent of their rights entitlement.
Suzlon Energy had said that the funds raised through the issue will be used 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.
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.
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.
“Suzlon’s ₹583.5 crore debt will be repaid with the assumption of full subscription of ₹1,200 crore rights issue opened on Tuesday. The total debt of the company was ₹3,200 crore as of June quarter 2022-23 and the company would be able to repay the remaining debt in the next eight years,” Mody said.
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.
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, a company statement said.
The project is located in Mandvi, Kutch Gujarat and is expected to be commissioned in 2023.
This order is a repeat order from Adani Green Energy and is in addition to the existing order of 226.8 MW as announced on 13th August 2021.
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