Suzlon’s Rs 1,200 cr Rights Issue Launched, Company Wants to Reduce Debt

New Delhi: Suzlon Energy’s rights issue worth Rs 1,200 crore opened on Tuesday, under which new shares will be offered by a company to existing shareholders.

These shareholders get the right to buy new shares with their ‘Rights Entitlement’.

The closing date for the rights issue is October 20.

Meanwhile, Suzlon’s Chief Financial Officer (CFO) Himanshu Mody told media in a virtual press conference on Tuesday that the company would be calling to divest its non-core assets after the rights issuance.

He said the board of directors will meet at the end of the current quarter to discuss the matter.

Mody explained the rationale behind the rights issue, saying it was mainly done to clear the debt in the company.

He said the debt was reduced to about Rs 3,000 crore after the refinancing in May this year.

Of the Rs 1,200 crore rights issue, about Rs 900 crore would be used to repay the debt, which will streamline the company’s finances, the CFO added.

Under the rights offering, Suzlon will issue up to 240 crore of partially paid-up shares at a price of Rs 5 per share added up to Rs 1,200 crore.

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