Wind turbine maker Suzlon plans USD-147m rights issue

Indian wind turbine manufacturer Suzlon Ltd (BOM:532667) intends to raise INR 12 billion (USD 147m/EUR 152m) through a rights issue due to be launched next month, a regulatory filing showed on Wednesday.

The transaction will involve the issue of 2.4 billion company shares, each with a face value of INR 2, at a price of INR 5 apiece. According to Suzlon’s statement, five equity shares will be issued for every 21 fully paid-up shares held by eligible shareholders of the company.

The issuance is due to open on October 11, 2022, and will be completed on October 20, 2022. If a level of full subscription is achieved, the deal will lift Suzlon’s outstanding shares to 12.47 billion from 10.07 billion.

Last month, Suzlon reported a pre-tax profit of INR 70 million on revenue of INR 13.78 billion, up by 21% on the year, for the first quarter of the fiscal year through March 2023. Thanks to a one-off gain, it saw its bottom line swing to a INR-24.33-billion net profit.

After years of carrying a large debt load, Suzlon concluded its refinancing at the end of May 2022. As of end-June, the group’s net debt had been reduced by more than 50%, pursuant to the conversion of financial instruments.

(INR 10 = USD 0.127/EUR 0.123)

Choose your newsletter by Renewables Now. Join for free!