Suzlon Energy announces 5:21 rights issue to raise Rs 1,200 crore

Renewable energy solution provider Suzlon Energy on Sunday, September 25, announced that its board has decided for issuance of the equity shares of the company through a rights issue to eligible equity shareholders of the company.

The total number of equity shares and rights issue size is 240 crore equity shares of Rs 2/- each at an issue price of Rs 5/- per equity share, aggregating to Rs 1,200 crore, Suzlon said in the BSE filing.

The issue price is fixed at Rs 5 per equity share (including a premium of Rs 3/- per equity share), which is at a discount of 45 per cent to the previous day’s closing price of Rs 9.09.

Out of Rs 5, the initial payment of Rs 2.5 per equity share is due upon application, and the remaining Rs 2.5 is due on subsequent call(s), it said.

The company announced a rights issue in the 5:21 ratio. If the shareholding of any of the eligible equity shareholders is five or more, such shareholders will be entitled to at least one Equity Share, it added.

On Friday, the stock ended 5.71 per cent lower at Rs 9.09 over its previous day’s closing price of Rs 9.64 a piece. The stock has jumped nearly 194 per cent in the last three years, while it has surged about 43 per cent in the past year.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)