Suzlon Energy has opened its rights issue to raise up to Rs 12 billion, which will be used to reduce its outstanding debt, strengthen the balance sheet, reduce interest cost outgo, and improve profitability.
This will also unlock working capital for the company to further increase its project execution. As per the letter of offer, the company currently has Rs 32.72 billion of debt, part of which will be paid off using the proceeds of the rights issue. The rights issue does not have a minimal threshold of subscription and the company will be able to use the proceeds irrespective of subscription level.