Suzlon Energy Rights Issue Worth 1,200 crores is open on Tuesday, October 11, 2022. Under a rights issue, new equity shares are offered by a company who are existing shareholders. In addition, these existing shareholders get the right to buy new shares by using their ‘Rights Entitlements’. The last date for the rights issue has been set as October 20, 2022.
Company up to 240 crores partly paid-up equity shares for cash. will issue at the cost of 5 per share (inclusive of premium of Rs.) 3 per rights equity share) inclusive 1,200 crores.
The issue will be in the ratio of 5 rights equity shares for every 21 fully paid-up equity shares held by eligible shareholders as on the record date of October 4, 2022. The record date is the day to determine the shareholders who rights issue and who will be eligible to participate in the rights issue.
The last date for on-market relinquishment of Rights is October 14, 2022. The Promoters and the Promoter Group have confirmed their participation and shall be fully subscribed to the extent of their entitlement. Suzlon’s Promoters and Promoter Group have confirmed their participation and will fully subscribe to the extent of their entitlement.
The funds raised through the issue will be used for repayment or prepayment of a part 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.
Suzlon Energy Dilip Shanghvi, Managing Director, Sun Pharmaceutical Industries, informed on Friday that the promoters have been informed of their intention to fully participate in the upcoming rights issue of the company. Sanghvi had bought 23 per cent stake in Suzlon 1,800 crore in 2015.
Suzlon is one of India’s top manufacturers in the wind component manufacturing segment by capacity and one of the top renewable O&M service providers in India by service capacity.
The company said last week that the rights issue would open on October 11 despite the death of its founder and CMD Tulsi Tanti.
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