Suzlon Energy to start trading ex-rights from today

3 Oct 2022 , 09:27 AM

Monday will mark the ex-rights trading day for Suzlon Energy’s rights issue of 5 shares for every 21 shares owned by the shareholder.

The company disclosed last week that its board has decided to offer equity shares of the company to the qualified equity shareholders of the company via a rights issue.

According to a BSE filing by the business, the total amount of the equity shares and rights issuance is 240 crore equity shares worth Rs2 each with an issue price of Rs5 per equity share, totalling Rs1,200 crore.

The issue price for the offer is set at Rs5 (plus a premium of Rs3 per equity share), which represents a 43% decrease from the closing price of Rs8.7 from the previous trading session. When applying, the initial payment of Rs2.5 per equity share is required, and the remaining payment of Rs2.5 per equity share is required on the subsequent call (s).

The corporation contacts its current shareholders rather than going public in order to obtain new equity capital through a rights issue.

Suzlon Energy is one of the top suppliers of renewable energy solutions in the nation. It is a small-cap company with a market valuation of Rs8,535 crore.

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