Home / Markets / Stock Markets /  Suzlon share rights issue update: Promoters confirm participation

As Suzlon Energy shares trade ex-rights today, promoters of the company have confirmed participation as per the letter of offer (LOF) dated September 28, 2022. The energy company informed Indian bourses about the development in regard to Suzlon Energy rights issue and said that promoters of the company have expressed their intention to subscribe to the full extent of their rights entitlement. Suzlon Energy said that the rights issue will open on 11th October despite the demise of its founder and CMD Tulsi Tanti.

In its stock market exchange filing, Suzlon Energy Ltd said, "In continuation to the announcement dated 2nd October 2022, the Promoters and the Promoter Group have re-confirmed their participation in the proposed rights issue and have expressed their intention to subscribe to the full extent of their rights entitlement. Accordingly, the Company will continue to follow the schedule for the proposed rights issue set out in its letter of offer dated 28th September 2022 (“LOF"). An addendum to the LOF (letter of Offer) will follow in due course."

In its exchange filing on 2nd October 2022, Suzlon Energy had informed Indian bourses about the sudden demise of its founder and CMD Tulsi Tanti due to cardia arrest while traveling from Ahmedabad to Pune.

Suzlon Energy rights issue details

Suzlon Energy rights issue price is fixed at 5 per equity share. It will open on 11th October 2022 and it will remain open for bidding till 20th October 2022. The company aims to raise 1200 crore from the rights issue via issuance of additional 240 crore shares of the company. Shareholders of the company holding 21 Suzlon Energy shares on rights issue record date (4th October 2022) will be entitled for 5 rights issue. The rights issue is proposed for listing on both NSE and BSE and it is likely to list on 3rd November 2022. Allotment of shares is expected on 31st October 2022.

 

Net proceeds from the rights 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 has been appointed as lead manager to the rights issue.

Suzlon Energy share price today opened downside and went on to hit intraday low of 7.50 apiece, logging around 13 per cent dip within few minutes of opening bell. However, the stock rebounded strongly and pared losses incurred in early morning deals. Suzlon Energy share price is currently quoting at 8.10 apiece, near 7 per cent below its Friday close of 8.70 apiece.

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