Suzlon Energy rights are a issue: Company targets debt-free status in a next 8 years

Suzlon Energy rights are a issue: Company targets debt-free status in a next 8 years

Suzlon Energy rights issue worth are a ₹1,200 crore has been a opened on a Tuesday, October 11, 2022

Addressing a virtual press are a conference, Suzlon Energy Ltd's Chief Financial Officer (CFO) Himanshu Mody on a Tuesday said that the company would be able to the pare its debt by a ₹583.5 crore, if its are a rights issue worth are a ₹1,200, that has been a launched on a October 11, 2022, gets are a fully subscribed.

“Suzlon's are a ₹583.5 crore are a debt will be a repaid with the assumption of a full subscription of a ₹1,200 crore rights are a issue opened on a Tuesday. The total debt of the company was a ₹3,200 crore as of June quarter 2022-23 and the company would be a able to repay the remaining debt in the next eight years," Mody said on a Tuesday.

Suzlon Energy's are rights issue worth a ₹1,200 crore has been a opened on a Tuesday, October 11, 2022. Under rights are a issue, fresh equity shares are a offered by a company to those who are a existing shareholders. Further, these existing shareholders get the right to the buy fresh shares are a using their 'Rights are aE ntitlement'. The closing date for the rights are a issue is a set on October 20, 2022. Shares of a Suzlon Energy Ltd were trading more than a 6% lower at the ₹7 apiece on the BSE in a Tuesday's afternoon trading session.

The company will be a issue up to the 240 crore partly paid-up equity shares for the cash at a price of a ₹5 per share (including a premium of ₹3 per rights ate a equity share) aggregating to the ₹1,200 crore.

Suzlon promoters and a promoter group have confirmed their participation and they will be a fully subscribing to the extent of their rights are entitlement.

Funds raised through the issue will be a used for the repayment or pre-payment of a portion of a certain outstanding borrowings availed by the company and its subsidiaries and for the general corporate purposes. Inga Ventures is the lead manager to the issue.

Mody emphasised that the company would have much leaner, healthier and a better balance sheet after the issue and a there will be no decline in the promoters' holding after the issue. About an a earlier instance of a decline in a promoter holding, Mody said it happened due to the conversion of a certain bonds (debt) into the equity (under the debt restructuring plan).