Govt approves Suzlon's Rs 1,800 cr Rights Issue

The government today said that it has approved Suzlon Energy's plan to raise Rs 1,800 crore via allotment of shares to the existing shareholders including non-resident Indians through a rights issue, which the wind power major has apparently suspended.     

The Cabinet Committee on Economic Affairs (CCEA) today gave its approval to Rs 1,800 crore Rights Issue of equity of Suzlon Energy to its existing shareholders, on recommendations by Foreign Investment Promotion Board.     

However, when contacted, a company official told PTI, "We have suspended the Rights Issue and the approval from CCEA would not change our decision".     

In September, Suzlon received board approval for raising up to Rs 1,800 crore through allotment of shares to the existing shareholders on rights basis. But it later suspended the plans due to choppy market conditions.     

Any company coming up with a Rights Issue of more than Rs 600 crores has to seek Cabinet approval for the same.     

The shares of the company were trading at Rs 59.30, up 1.63 per cent in the afternoon trade on the BSE.