Suzlon Energy announces a 5:21 rights issue, to raise Rs1,200 crore

26 Sep 2022 , 07:08 AM

Suzlon Energy, a provider of renewable energy solutions, declared on Sunday, September 25, that its board has chosen to issue the company’s equity shares via a rights issue to qualified equity shareholders.

Suzlon stated in the BSE filing that the overall size of the equity shares and rights issuance is 240 crore equity shares of Rs2/- apiece at an issue price of Rs5/-, amounting to Rs1,200 crore.

The issue price is set at Rs5 per equity share, which represents a discount of 45% from the previous day’s closing price of Rs9.09 (including a premium of Rs3/- per equity share).

According to the statement, of the Rs5, Rs2.5 is charged upon application and the rest Rs2.5 is due on any future call(s).

The corporation disclosed a 5:21 rights issue. It was noted that qualifying equity shareholders shall be entitled to at least one equity share if their shareholding is five or more.

The stock’s closing price on Friday was Rs9.09, 5.71% less than the day before when it closed at Rs9.64 per share. The stock has increased by almost 194% over the last three years, and by about 43% over the previous year.

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