Suzlon rights issue subscribed 90% a day ahead of close, stock up 20%

The company is issuing 2.4 billion new shares at Rs 5 apiece; proceeds will be used pare debt, which currently stands at Rs 3,272 crore

The Rs 1,200-crore rights issue of Suzlon Energy was subscribed nearly 90 per cent on Wednesday, a day before its close. So far, the rights issue has received bids for 2.16 billion shares as against 2.4 billion on offer, shows stock exchange data. Shares of the company closed at Rs 9.24, up nearly 20 per cent over its previous day’s close. The company is issuing 2.4 billion new shares at Rs 5 apiece through the rights issuem following which, Suzlon’s equity base will increase by nearly 24 per cent from 10 billion at present to nearly 12.5 billion. The company, which is into wind component manufacturing, plans to use the rights issue proceeds pare its debt, which currently stands at about Rs 3,272 crore.