On Wednesday, Suzlon Energy announced the opening of its Rs 1,200 crore rights issue on October 11, 2022. According to the reports, the company would issue up to Rs 240 crore partly paid-up equity shares for cash for Rs 5 per share.

Under the rights issue, fresh equity shares are offered by a firm to those who are existing shareholders. These existing shareholders get the right to buy fresh shares using their Rights Entitlement.

The issue would be in the ratio of 5 rights equity shares for every 21 fully paid-up equity stakes held by the eligible shareholders on the record date of October 4, 2022.
October 14 is the last date for on-market renunciation of rights entitlements.

The promoters have confirmed their participation. The statement said they would be fully subscribing to the extent of their rights entitlement. The funds would be used to repay outstanding borrowings availed by the company and its subsidiaries. Inga Ventures Private Limited is the lead manager of the issue.

On BSE, Suzlon shares closed at Rs 8.11 apiece, down by 2.64 per cent. The stock hit an intraday high and low of Rs 8.32 apiece and Rs 7.97 apiece, respectively.