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Shares of wind turbine manufacturer Suzlon Energy fell hours after the company announced a 5:21 scheme of the rights issue at a discounted price.
For the unversed, Suzlon is an Indian Wind energy company that was formed in 1995. The company is a pioneer in the field of wind energy with its presence in 17 countries. It has over 12,380 wind turbines installed across six continents and 14 world-class manufacturing facilities in India. It manufactures wind turbines, provides a variety of services regarding the same, and is also a player in the solar energy sector since 2016.
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In an exchange filing, the company announced that it will be raising funds to the tune of Rs 1,200 crores by issuing 240 crore shares via a rights issue, with a face value of Rs 2 and issue price of Rs 5 (a discount of 45% from Friday's close).
Under the issue, the right to purchase 5 equity shares would be available to investors holding 21 fully paid-up shares in the company on the record date. This issue will bring the number of outstanding equity shares up from 10,07,30,87,083 to 12,47,30,87,083, assuming full subscription.
Investors did not take to the news kindly as the stock witnessed a gap down opening today. It opened below Rs 9 per share and fell over 6% today itself. It touched a low of Rs 8.15 per share but closed at Rs 8.55 per share today.
Article by Aman Agarwal.
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