Suzlon Energy rights issue subscribed 1.8 times, stock down 3.7%

The Rs 1,200-crore rights issue of Suzlon Energy garnered nearly 1.8 times subscription. The rights offering received bids for 4.24 billion shares as against 2.4 billion on offer, showed stock exchange data. Shares of the company closed at Rs 8.9, down 3.7 per cent over its previous day’s close.

The company is issuing 2.4 billion new shares, at Rs 5 apiece, through the rights issue, following which Suzlon’s equity base will increase by nearly 24 per cent from 10 billion, at present, to nearly 12.5 billion.

The company, which is into wind component manufacturing, plans to use the rights issue proceeds to pare its debt, which currently stands at about Rs 3,272 crore.