Suzlon Energy shares fall 7% after board approves raising funds via rights issue

Shares of Suzlon Energy Ltd fell as much as 7.15 percent on Monday, September 26, after the company announced that the board had approved raising up to Rs 1,200 crore via a rights issue.

Suzlon shares were trading 5.61 percent down at Rs 8.58 on BSE at 9:40 am.

The Securities Issue Committee of the Board, at its meeting held on Sunday, September 25, approved the rights issue, the company said. The company will raise Rs 1,200 crore through the issuance of 240 crore shares with a face value of Rs 2 each at an issue price of Rs 5 per share.

The number of outstanding equity shares will increase from 1007,30,87,083 to 1247,30,87,083 after the issue (assuming full subscription).

Five rights equity shares will be issued for every 21 fully paid-up equity shares held by the eligible shareholders of the company. If the shareholding of any of the eligible equity shareholders is five or more, such shareholders will be entitled to at least one equity share, it added.

(With PTI inputs)