Subscribe
24NEWSHOUR 24NEWSHOUR
Write For Us
  • Home
  • Business
  • Education
  • Entertainment
  • News Update
  • Others
    • Technology
    • Health & Lifestyle
  • Write For US
  1. Home
  2. Business
  3. Suzlon Energy Opens its Rights Issue
Business

Suzlon Energy Opens its Rights Issue

 Suzlon Energy Opens its Rights Issue

Suzlon Energy Limited, one of India’s top manufacturers in the wind component manufacturing segment as per capacity, and one of the top renewable O&M service providers in India, has opened its rights issue to raise up to Rs. 1,200 crore, on October 11, 2022. The entitlement ratio for the rights issue is 5:21 (five shares for every twenty one equity shares held by eligible shareholders of the Company, as on the record date of October 4, 2022).

With a footprint across 17 countries spread over six continents, Suzlon Energy has the largest wind installed base as a wind energy OEM, with approximately 13.45 GW of installed capacity in India as at June 30, 2022. It contributes towards nearly 33% of India’s wind installed base. It is also the largest wind O&M service provider in India, in terms of capacity. The Company also has an installed capacity of approximately 5.96 GW outside India, aggregating to a global installed capacity of 19.44 GW.

Suzlon has 16 manufacturing facilities across India in strategic locations, to manufacture forging and foundry components that are required for the manufacture of Wind Turbine Generators and their components. The Company already has an order book of 700MW in place for execution. Due to its established track record over 27 years and vertically integrated low-cost supply chain, Suzlon has relationships with several customers, including large independent power producers, public sector undertakings and marquee institutions.

The Company expects growth to be driven by the Commercial & Industrial (C&I) segment, which is gaining strong momentum due to wind energy being critical for high PLF projects. In addition, the emergence of hybrid (solar + wind) power also is a key driver, as most of the customers and utilities prefer higher PLF and scheduled power availability. Finally, wind repowering is also expected to drive nearly 20GW of capacity till 2030, since existing wind capacities would need rebuilding. Government policies also bode well for the wind energy sector, amongst which is the in-principle decision to stop electronic reverse auction for wind power projects in India.

The Promoters and Promoter Group have re-confirmed their participation in the upcoming rights issue, and also declared that they will be fully subscribing to the extent of their rights entitlement. One of the significant investors in the Company, Mr Dilip Shanghvi has also confirmed his intention to fully participate in the rights issue with subscribing for additional shares, as per a disclosure filed with the stock exchanges. The rights issue does not have a minimal threshold of subscription; the Company will be able to use the proceeds raised through the rights issue irrespective of subscription level.

The proceeds of the rights issue will be used to reduce the outstanding debt of the Company, which in turn will strengthen the balance sheet, reduce interest cost outgo, and improve profitability. This in turn will also unlock working capital for the Company to further increase its project execution. As per the Letter of Offer, the Company currently has Rs. 3,272 crores of debt, part of which will be paid off using the proceeds of the rights issue.

Suzlon also aims to continue to improve its financial position through its liability management program, and through the sale of non-core assets. The Company is also seeking to achieve greater operational efficiencies and reduce fixed cost by: (i) focusing on sale of WTG in the Indian market; (ii) reorganising its various business divisions; (iii) developing new WTG models that are customised for the India market; (iv) expanding the O&M service business in India; and (v) optimized funding of working capital requirements.

Previous post
Next post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • DEE DEVELOPMENT ENGINEERS LIMITED FILES DRHP WITH SEBI
  • AGILUS DIAGNOSTICS LIMITED FILES DRHP WITH SEBI
  • Vi Introduces Data Sharing and Night Time Unlimited Data into Vi Max Family Postpaid Plans
  • Gem & Jewellery industry pledges to enhance Trust, Transparency, Sustainability, Traceability & Responsible Sourcing thru’ self-regulation
  • AZAD ENGINEERING LIMITED FILES DRHP WITH SEBI
Latest News
Business

DEE DEVELOPMENT ENGINEERS LIMITED FILES DRHP WITH SEBI

October 4, 2023
Business

AGILUS DIAGNOSTICS LIMITED FILES DRHP WITH SEBI

October 4, 2023
Business

Vi Introduces Data Sharing and Night Time Unlimited Data into

October 4, 2023
Business

Gem & Jewellery industry pledges to enhance Trust, Transparency, Sustainability,

October 3, 2023
24NEWSHOUR 24NEWSHOUR

Get The Post

Business
Education
News Update

Quick Links

About Us
The News Strike
The News Equity

Follow Us

© Copyright 2023. All rights reserved.
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}