Suzlon Energy drops after announcing 5:21 rights issue to raise Rs 1,200 cr

Suzlon Energy slumped 6.71% to Rs 8.48 after the company announced that its board has approved raising Rs 1,200 crore via a rights issue of 240 crore shares.

In an exchange filing, the renewable energy firm said that the securities issue committee of the board approved the rights issue. The company will raise Rs 1,200 crore through issuance of 240 crore shares with face value of Rs 2 each at an issue price of Rs 5 per share, the exchange filing added.

The company will issue five rights equity shares for every twenty one fully paid-up equity shares held by the eligible equity shareholders of the company, as on the record date as may be notified subsequently (5:21 ratio).

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 rights issue price of Rs 5 per equity share is at a discount of 45% to the previous session's closing price of Rs 9.09.

The Suzlon Group is one of the leading renewable energy solutions providers in the world with presence in 17 countries.

On a consolidated basis, the company reported net profit of Rs 2,433.33 crore as against a net loss of Rs 22.44 crore in Q1 FY23 over Q1 FY22. Net sales rose 21.4% YoY to Rs 1,377.58 crore in Q1 FY23.

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