Suzlon Aims to Raise Up to Rs 1,800 Crore through QIP

2 Aug 2023 , 11:08 AM

Suzlon Energy plans to raise Rs 1,500-Rs 1,800 crore through a public market offering of shares to institutional investors. The wind turbine maker aims to substantially reduce debt and improve its business prospects.

The company underwent two rounds of debt restructuring, the latest in 2020, reducing gross debt to Rs 1,806 crore as of June 30, 2023, with a positive consolidated net worth of Rs 1,297 crore.

The proposed fundraising will be conducted through a Qualified Institutional Placement (QIP) process. Suzlon’s stock price has increased by over 82% since the beginning of the year to Rs 19.38 on the BSE as of Tuesday, resulting in a market cap of nearly Rs 24,000 crore.

This will be the second equity fundraising by Suzlon in less than a year, following the Rs 1,200 crore raised through a rights issue in October 2022, where Rs 600 crore was used to reduce debt to Rs 2,139 crore.

The primary objective of the current fundraising is to deleverage the balance sheet by repaying loans, reducing debt burden, and interest outgo. Some of the funds will also be allocated for meeting working capital requirements and capital expenditures.

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