Wind turbine manufacturer Suzlon Energy on Tuesday said it will raise funds through rights issue to repay its debt.
The rights issue committee of directors at its meeting held on Monday, has decided to allot 2 equity shares for every 15 shares held by the existing shareholders on a rights basis, Suzlon said in a filing to the Bombay Stock Exchange.
The company would offer these shares at Rs 63 a piece, a premium of nearly 12 per cent over the yesterday's closing price at Rs 56.30 on the BSE.
Shares of Suzlon Energy were trading at Rs 55.75 on the BSE, down 0.98 per cent from its previous close. The issue of shares on a rights basis is intended to reduce the company's debts.
If the shareholding of an equity shareholder is less than 8 equity shares or is not in multiples of 15, the fractional entitlement of such equity shareholders would be ignored, the filing added.
Last week, Suzlon reported a consolidated loss of Rs 1.88 billion (Rs 188.47 crore) for the fourth quarter ended March 2010. The wind major had reported a profit of Rs 3.15 billion (Rs 314.89 crore) during the corresponding period a year earlier.
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