Suzlon Energy's Rs 1,200-crore rights issue oversubscribed by 1.8 times

Suzlon Energy on Thursday said that its Rs 1,200-crore rights issue has been subscribed by 1.8 times.

"The (rights) issue resulted into subscription of 435.46 crore shares resulting into oversubscription by 1.8 times. The issue period was from October 11, 2022 to October 20, 2022," a company statement said.

Suzlon Energy Ltd, one of India's top manufacturers in the wind component manufacturing segment as per capacity and one of the top renewable O&M service providers in India as per capacity serviced, announced the successful closure of the issue of 240 crore partly paid-up equity shares on rights basis to the eligible equity shareholders.

According to the statement, the issue size was 240 crore partly paid-up equity shares for cash, at a price of Rs 5 per rights equity share (including a premium of Rs 3 per rights equity share) aggregating up to Rs 1,200 crore on a rights basis in the ratio of 5 rights equity shares for every 21 fully paid-up equity shares.

The funds raised via rights issue are in multiple calls -- first call at time of application is Rs 600 crore, which will be used in the manner described in the letter of offer, including for repayment or pre-payment of a portion of certain outstanding borrowings availed by the company and its subsidiaries, it explained.

The allotment and listing formalities of the new shares on the BSE & NSE is expected to be completed by the first week of November 2022, it stated.

Intermediaries for this rights issue include Inga Ventures Private Limited - the lead manager to the issue, S&R Associates - the legal advisor to the company as to Indian law, IndusLaw - the legal advisor to the lead manager as to Indian law and IndusInd Bank Limited - the banker to the issue.