Suzlon Energy Limited stock price closes over 6% lower after rights issue announced

The stock of Suzlon Energy Limited declined over 6 percent on Monday, 26 September, a day after the company announced its rights issue. At the end of the session, the shares of Suzlon closed 6.16 percent lower at Rs 8.53 on the Bombay Stock Exchange. The company earlier announced that its board had approved raising Rs 1,200 crore through a rights issue of 240 crore shares. The price of the shares under the issue will be Rs 5 per equity, which was a 45 percent discount on the closing value on Friday. Furthermore, the rights issue will be on the ratio of 5:21, meaning that Suzlon will issue five rights shares for every 21 shares held by an investor. “If the shareholding of any of the eligible equity shareholder is 5 (Five) or more, such shareholders will be entitled to at least 1 (One) Equity Share,” a filing by Suzlon stated. The shares of Suzlon Energy Limited had crashed over 7 percent during the early morning trade, before recovering slightly. The shares under the rights issue have a face value of Rs 2 per equity. According to a statement filed before the stock exchanges, the number of outstanding equity shares of Suzlon will increase from 1007,30,87,083 to 1247,30,87,083 after the issue, assuming full subscription. Details about Suzlon: Suzlon Energy is one of the leading renewable energy services providers in the country. The company is a pioneer in wind energy generation, with 19,441+ MW wind energy generated till date, as per its website. According to its financials, Suzlon reported a net profit of Rs 2,433.33 crore, as against a net loss of Rs 22.44 crore in Q1 FY23 over the corresponding quarter last year, according to PTI. Net sales rose 21.4 percent year-on-year to Rs 1,377.58 crore in Q1 FY23. Stock market today: The markets remained firmly in negative on Monday, with both Sensex and Nifty falling over 1.5 percent. BSE Sensex tanked 1.64 percent or 953.70 points to 57,145.22. NSE Nifty 50 settled at 17,016.30, sliding 1.84 percent. The local exchanges declined for the fourth consecutive session due to the possibility of the Reserve Bank of India announcing a hike in the interest rates, like its global counterparts, to curb inflation. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.