Suzlon Energy Board Approves ₹2,000 Crore Fundraising for Growth
Suzlon Energy, a leading renewable energy company, announced on Friday that its board has given approval for a fundraising initiative of up to ₹2,000 crore. The decision was disclosed through a regulatory filing to the stock exchanges. Earlier in the week, Suzlon Energy had announced that it would discuss and approve the capital raising plan during its board meeting scheduled for July 7.
According to the filing, Suzlon Energy’s board has approved the issuance of fully paid-up equity shares and/or convertible bonds (CBs), non-convertible debt instruments, or any other instruments, including detachable warrants. The instruments may be issued in registered or bearer form, or any combination thereof, in one or multiple tranches, denominated in Indian Rupee. The company intends to carry out private offerings or qualified institutional placements, or a combination of both, with the aggregate consideration not exceeding ₹2,000 crore. The fundraising will be conducted in compliance with the applicable laws, including the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013, subject to the necessary approvals.
Suzlon Energy had previously mentioned that the capital raising would be executed through one or more permissible methods. In a previous exchange filing, the company stated, “This is to inform that a meeting of the Board of Directors of the Company will be held on Friday, 7th July 2023, to consider and approve: 1. Capital raising by way of one or more or a combination of permissible methods; 2. Seeking approval of the shareholders, if required.”
During the fiscal quarter of January-March 2022-23, Suzlon Energy reported a consolidated net profit of ₹319.99 crore, benefiting from reduced expenses. In the same period of the previous year, the company had experienced a consolidated net loss of ₹205.52 crore. The total income from operations decreased to ₹1,699.96 crore in the quarter ending on March 31, 2023, compared to ₹2,478.73 crore in the previous year.
Suzlon Energy’s share price has been experiencing an upward trend over the past one and a half months. The energy stock has surged from approximately ₹8.20 to ₹18.37 per share, delivering a remarkable return of over 100 percent during this period. In the last month alone, the stock has risen from around ₹11 to ₹16.80 per share, reflecting a nearly 50 percent increase. On July 7, shares of Suzlon Energy closed 1.36 percent higher at ₹17.89 on the BSE, surpassing the previous closing price of ₹17.65 per share.
About Suzlon Energy:
Suzlon Energy Limited is an Indian multinational wind turbine manufacturer headquartered in Pune, India. It was formerly ranked by MAKE as the world’s 5th largest wind turbine supplier. Suzlon was founded in 1995 by Tulsi Tanti. The company’s first wind turbine was installed in 1996. Suzlon has since grown to become one of the largest wind turbine manufacturers in the world. The company has installed over 19.7 GW of wind energy in 17 countries across six continents.
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