Suzlon Energy has opened its rights issue

Suzlon Energy Limited opened its rights issue on October 11, 2022 to raise up to Rs 12 billion. The entitlement ratio for the rights issue is 5:21, which means 5 shares for every 21 equity shares held by eligible shareholders of the company, as on the record date of October 4, 2022. The promoters and promoter group have reconfirmed their participation in the rights issue, and have also declared that they will be fully subscribing to the extent of their rights entitlement. The rights issue does not have a minimum threshold of subscription. The company will be able to use the proceeds raised through the rights issue irrespective of the subscription level. The proceeds of the rights issue will be used to reduce the outstanding debt of the company. This, in turn, will unlock the working capital for the company to further increase its project execution. As per the letter of offer, the company currently has Rs 32.72 billion of debt, part of which will be paid off using the proceeds of the rights issue.