New Delhi: The government on Friday said that it has approved Suzlon Energy’s plan to raise Rs1,800 crore via allotment of shares to the existing shareholders including non-resident Indians through a rights issue, which the wind power major has apparently suspended.
The Cabinet Committee on Economic Affairs (CCEA) on Friday gave its approval to Rs1,800 crore Rights Issue of equity of Suzlon Energy to its existing shareholders, on recommendations by Foreign Investment Promotion Board.
However, when contacted, a company official said, “We have suspended the Rights Issue and the approval from CCEA would not change our decision.”
In September, Suzlon received board approval for raising up to Rs1,800 crore through allotment of shares to the existing shareholders on rights basis. But it later suspended the plans due to choppy market conditions.
Any company coming up with a Rights Issue of more than Rs600 crores has to seek Cabinet approval for the same.
The shares of the company were trading at Rs59.30, up 1.63% in the afternoon trade on the BSE.