The Business Bytes
TBB BUREAU
NEW DELHI OCT 11, 2022
Suzlon Energy’s rights issue worth Rs 1,200 crore opened on Tuesday, under which fresh equity shares are offered by a company to existing shareholders. These shareholders will get the right to buy fresh shares using their ‘Rights Entitlement’.
Under the rights issue, Suzlon will issue up to 240 crore partly paid-up equity shares at a price of Rs 5 per share aggregating to Rs 1,200 crore.
Out of the Rs 1,200 crore rights issue, around Rs 900 crore would be used to repay the debt.
The closing date for the rights issue is October 20.
The proceeds of the rights issue will be used to reduce the outstanding debt of the Company, which in turn will strengthen the balance sheet, reduce interest cost outgo, and improve profitability. This in turn will also unlock working capital for the Company to further increase its project execution. As per the Letter of Offer, the Company currently has Rs. 3,272 crores of debt, part of which will be paid off using the proceeds of the rights issue.
Suzlon also aims to continue to improve its financial position through its liability management program, and through the sale of non-core assets.
Suzlon’s Chief Financial Officer (CFO) Himanshu Mody said on Tuesday that the company would take a call on divesting its non-core assets after rights issue.
With a footprint across 17 countries spread over six continents, Suzlon Energyhas the largest wind installed base as a wind energy OEM, with approximately 13.45 GW of installed capacity in India as at June 30, 2022. It contributes towards nearly 33 per cent of India’s wind installed base. It is also the largest wind O&M service provider in India, in terms of capacity. The Company also has an installed capacity of approximately 5.96 GW outside India, aggregating to a global installed capacity of 19.44 GW.
