Wind Turbine Manufacturer Suzlon to Raise ₹12 Billion Through Rights Issue
The company will issue 2.4 billion shares at ₹5 per share
September 26, 2022
India-based wind turbine manufacturer Suzlon Energy hopes to raise ₹12 billion (~$147.09 million) through a right issue of 2.4 billion company shares. The shares with a face value of ₹2 (~$0.025) each will be issued at ₹5 (~$0.061).
Five equity shares (rights) will be issued for every 21 fully paid-up equity shares held by the eligible shareholders of the company. If the shareholding of any eligible equity shareholders is five or more, such shareholders will be entitled to at least one equity share.
Suzlon said in a BSE filing, assuming full subscription, the outstanding equity shares will increase from 10,073,087,083 to 12,473,087,083 after the issue.
The company had posted net revenue of ₹13.78 billion (~$173.52 million) for the first quarter of the financial year 2022-23, a year-over-year increase of 21% from ₹11.35 billion (~$142.92 million). It recorded a net profit of ₹24.33 billion (~$306.34 million) during the quarter through exceptional gains primarily on account of the conversion of financial instruments according to refinancing.
Suzlon recently won an order from Apraava Energy (formerly CLP India) to develop a 252 MW wind power project. The project is in Sidhpur, Gujarat, and is expected to be commissioned in 2022. Suzlon will install 120 S120-140m wind turbine generators with a hybrid lattice tubular tower, with a rated capacity of 2.1 MW each.
The company also won an order to develop a 180.6 MW wind power project for Sembcorp’s renewables subsidiary Green Infra Wind Energy. In Bagalkot, Karnataka. It will install 86 WTGs with a Hybrid Lattice Tubular tower and a rated capacity of 2.1 MW each. This order is part of the bid won under the SECI tranche XI auctions by Sembcorp.
In July 2020, Suzlon announced that it had completed restructuring its debt with unanimous approval from its secured lenders.
The company has a global presence with 19.4 GW of installed wind capacities in North and South America, South Africa, Europe, Australia, and Asia. The highest capacity of 14.40 GW is deployed across Asia as of June 2022.