Suzlon's Rs 1,200 cr rights issue launched, company aims to cut down debt

Suzlon Energy's rights issue worth Rs 1,200 crore opened on Tuesday, under which fresh equity shares are offered by a company to existing shareholders.

These shareholders will get the right to buy fresh shares using their 'Rights Entitlement'.

The closing date for the rights issue is October 20.

Meanwhile, Suzlon's Chief Financial Officer (CFO) Himanshu Mody told media persons in a virtual press conference on Tuesday that the company would take a call on divesting its non-core assets after the rights issue.

He said that the board will meet at the end of the current quarter to discuss the matter.

Explaining the reason behind the rights issue, Mody said that it was mainly done to clear the debt in the company.

He said the debt was cut down to around Rs 3,000 crore after the refinancing done in May this year.

Out of the Rs 1,200 crore rights issue, around Rs 900 crore would be used to repay the debt, which will streamline the company's finances, the CFO added.

Under the rights issue, Suzlon will issue up to 240 crores partly paid-up equity shares at a price of Rs 5 per share aggregating to Rs 1,200 crore.

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