On Tuesday, October 11, 2022, the Suzlon Energy rights issue, worth 1,200 crore, was opened. A corporation will issue new equity shares to its existing shareholders in a rights issue. Additionally, these current shareholders have the option to purchase new shares using their “Rights Entitlement.” The rights issuance has a closing date of October 20, 2022.
Up to 240 crore partially paid-up equity shares, totaling 1,200 crore, would be issued by the firm for cash at a price of 5 per share (plus a premium of 3 each rights equity share).
For every 21 fully paid-up equity shares owned by eligible shareholders on the record date of October 4, 2022, there will be an issue of 5 rights equity shares. The record date is used to identify the shareholders who will receive the rights issue and who will be qualified to participate in it.
On-market renunciation of rights entitlements is no longer permitted from October 14, 2022. According to the statement, the promoters and promoter group have confirmed their participation and will fully subscribe to the full extent of their legal entitled. Suzlon promoters and the promoter group have indicated that they will be attending, and they will be fully subscribing to the fullest extent permitted by their rights.
The money obtained through the offering will be utilised for general corporate purposes as well as the return or prepayment of a portion of the outstanding borrowings taken out by the company and its subsidiaries. The issue’s primary manager is Inga Ventures.
Dilip Shanghvi, the managing director of Sun Pharmaceutical Industries, told the promoters of his intention to fully participate in the future rights offer of the firm, according to a statement released by Suzlon Energy on Friday. For 1,800 crore, Shanghvi acquired a 23% stake in Suzlon in 2015.
According to capacity, Suzlon is one of India’s leading producers of wind components, and according to capacity serviced, it is also a top provider of renewable O&M services.
Even though its founder and CMD Tulsi Tanti passed away last week, the company announced last week that the rights offering would begin on October 11.