Suzlon Rights Issue Review by Chanakyanipothi.com.
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Oversubscription: The rights issue is oversubscribed by 1.8 times on the last day of the issue.
About Suzlon Energy ltd
Suzlon Group is among the world’s leading renewable energy solutions provider that is revolutionising and redefining the way sustainable energy sources are harnessed across the world. Presence in 17 countries across Asia, Australia, Europe, Africa and the Americas, Suzlon is powering a greener tomorrow with its strong competencies in renewable energy systems. Suzlon’s extensive range of robust and reliable products backed by its cutting-edge R&D and more than two decades of expertise are designed to ensure optimum performance, higher yields and maximum return on investment for the customers.
Since its inception in 1995, Suzlon has rapidly expanded its footprint across the world and made a mark for itself through technological and product innovation. Suzlon is a pioneer in the field of wind energy and is currently presence in 17 countries. With over 12,380 wind turbines installed across six continents and 14 world class manufacturing facilities in India, Suzlon wind energy solutions have become the byword for innovation and competitive advantage.
Suzlon Rights Issue 2022 Details
|Oct 11, 2022 – Oct 20, 2022
|Suzlon Energy Ltd
|Issue Size (Shares)
|Issue Size (Amount)
|Rs. 1,200.00 Crores
|Rs. 5 per share
|Rs. 2 per share
|Terms of Payment
|The amount of Rs. 2.50 per share has to be paid at the time of Application and Rs. 2.50 per share on subsequent calls.
|5 Equity Shares for every 21 Equity Shares held on the Record Date
Suzlon Rights Issue 2022 Timetable
|Credit of Rights Entitlements
|Bid/Offer Opens On
|Renunciation of Rights Entitlements
|Bid/Offer Closes On
|Deemed Date of Allotment
Objects of The Suzlon Rights Issue:
The proposed utilization of the Net Proceeds by the Company is for Repayment or pre-payment of a portion of certain outstanding borrowings availed by the Company and its Subsidiaries.
Snapshot of Suzlon financials
|Profit After Tax
|Amount in Rs. Crore
Suzlon Rights Issue 2022 Guidance by Paresh Gordhandas, Research Analyst
As compared to current price of Rs. 9.25, the rights shares are being offered at Rs. 5. After incurring huge losses, during last few years, the company has endeavored to reduce loan burden and out of the proceeds of the rights issue, Rs. 900 is proposed to be utilized for repayment of loans. This will help the company to reduce interest burden and help in improving its working capital. Renewable energy sector has huge potential and now after ease in working capital, the company proposes to take on more orders and there are all chances of sharp recovery in the financials of the company. Yes, the rights issue comes with huge risks, and yet the investors may take chance and there are all possibilities that the company may come out of financial mess and show strong rise in its market price.