Mumbai: Shares in Suzlon Energy Ltd, India’s biggest wind turbine maker, fell more than 7% on Thursday after it said it would consider a rights issue to raise up to Rs1,800 crore.

Expansion plans: A worker at Suzlon’s factory in Khori, Maharashtra. Suzlon Green Power Ltd, a unit of Suzlon Energy, said it plans to build wind energy projects worth $5 billion in India and China. Gautam Singh / AP

Suzlon’s board of directors will meet on 27 September to consider the proposal, the Ahmedabad-based company said in a statement to the Bombay Stock Exchange (BSE). The world’s fifth biggest wind turbine maker did not say what it would use the funds for.

Suzlon closed at Rs182 on BSE, down 7.17% from its previous close.

Meanwhile, a unit of Suzlon Energy, Suzlon Green Power Ltd, said it plans to build wind energy projects worth $5 billion (Rs23,150 crore) in India and China. Tulsi Tanti, founder of Suzlon Energy, and his family will invest $1.5 billion as equity in the projects to be built over five years, Suzlon Green said in a 24 September PRNewswire statement.

Suzlon Green will acquire existing assets and develop new ones, according to the statement. The investment plan was unveiled at the annual meeting of the Clinton Global Initiative in New York, it said.

Suzlon had said earlier this month it had struck a deal with Martifer SGPS SA for an early acquisition of the Portuguese conglomerate’s stake in Germany’s Repower Systems AG for nearly $400 million.

Suzlon is just the latest Indian company to tap rights issues to raise funds as higher borrowing costs pinch.

Hindalco Industries Ltd, India’s leading aluminium maker, on Monday launched a Rs5,050 crore rights issue, while Tata Motors Ltd, the country’s top vehicle maker, is set to open its Rs4,150 crore rights issue on 29 September.

But turbulent market conditions are a concern, a trader said. “People have concerns about any company that is looking to raise money in these market conditions," said an institutional sales dealer, who asked not to be named. “Even the Tata Motors offer doesn’t look very exciting," he said.

Tata Motors, which is raising the money to help fund its $2.3 billion acquisition of Jaguar and Land Rover, had scaled down the size of its rights offer from Rs7,200 crore.

Indian companies have raised about $4.8 billion from rights issues until mid-August, Thomson Reuters data showed, topping the Asia-Pacific region excluding Japan. More such offers may be in the pipeline after the capital markets regulator recently eased rules for rights issues, cutting the timeline and changing the pricing conditions.

Bloomberg contributed to this story.