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Business News/ Markets / Stock Markets/  Suzlon Energy rights issue opens today. Key things to know
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Suzlon Energy rights issue opens today. Key things to know

The closing date for Suzlon Energy's rights issue is set on October 20, 2022

Suzlon Energy shares fell over 3%Premium
Suzlon Energy shares fell over 3%

Suzlon Energy rights issue worth 1,200 crore has opened on Tuesday, October 11, 2022. Under rights issue, fresh equity shares are offered by a company to those who are existing shareholders. Further, these existing shareholders get the right to buy fresh shares using their 'Rights Entitlement'. The closing date for the rights issue is set on October 20, 2022. 

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

The issue will be in the ratio of 5 rights equity shares for every 21 fully paid-up equity shares held by eligible shareholders on the record date of October 4, 2022. The record date is the day for determining the shareholders to whom the Rights Issue will be made and who would be eligible to participate in the Rights Issue.

The last date for on-market renunciation of rights entitlements is October 14, 2022. The promoters and promoter group have confirmed their participation and they will be fully subscribing to the extent of their rights entitlement, it said. Suzlon promoters and promoter group have confirmed their participation and they will be fully subscribing to the extent of their rights entitlement.

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

Suzlon Energy on Friday informed that Dilip Shanghvi, Managing Director of Sun Pharmaceutical Industries, has conveyed to the promoters his intention to fully participate in upcoming the rights issue of the company. Shanghvi had bought a 23% stake in Suzlon for 1,800 crore, in 2015.

Suzlon is one of India’s top manufacturers in the wind component manufacturing segment as per capacity and is one of the top renewable O&M service providers in India, as per capacity serviced.

The company last week had said that the rights issue will open on 11 October despite the demise of its founder and CMD Tulsi Tanti.

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Published: 11 Oct 2022, 12:14 PM IST
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