Suzlon Energy launches QIP to raise up to Rs 2,000 crore – EQ Mag
Suzlon Energy said its committee set the floor price of the QIP at Rs 18.44 a piece. It is based on the pricing formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations.
Shares of Suzlon Energy Ltd will be in focus on Thursday morning after the board of wind turbine maker announced launching of a qualified institutional placement (QIP) offering to raise as much as Rs 2,000 crore. The Suzlon board on August 9 decided to undertake qualified institutions placement of equity shares to an extent of up to Rs 1,500 crore, with an option to retain oversubscription of up to Rs 500 crore.
Suzlon Energy said its committee set the floor price of the QIP at Rs 18.44 a piece. It is based on the pricing formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations and in accordance with the special resolution dated August 8 passed by the shareholders of the company by way of postal ballot. Pursuant to Regulation 176(1) of the SEBI ICDR Regulations, the company may offer a discount of not more than 5 per cent on the floor price so calculated for the issue, Sulzon Energy noted.
The floor price of Rs 18.44 per share was at a 5.7 per cent discount to Suzlon’s Wednesday closing price of Rs 19.56 per share on BSE.
In a separate stock exchange filing, Suzlon said: “We wish to inform you that a meeting of the Securities Issue Committee of the board of directors of the Company is scheduled to be held on Monday, 14th August 2023 to, inter alia, consider and approve the Issue price, including a discount, if any thereto, as permitted under the SEBI ICDR Regulations, for the Equity Shares to be allotted to qualified institutional buyers, pursuant to the Issue.”
The proceeds of the issue would be utilised on debt repayment and general corporate purposes. Last month, Suzlon Energy registered a 96 per cent decline in consolidated net profit at Rs 101 crore in the April-June quarter. The company had registered a consolidated net profit of Rs 2,433 crore in the year-ago quarter, an investors’ presentation showed. The company’s net revenue in the first quarter of this fiscal also came down to Rs 1,348 crore from Rs 1,378 crore in the year-ago period.
Suzlon ENergy shares are up 13 per cent in the last one month and 113 per cent in the last six months.
