SUZLON DECLARES RIGHTS ISSUE AT Rs.63

As declared earlier Suzlon energy declares rights issue of equity shares of Face value Rs.2.

 Share holders will get 2 shares for every 15 shares held. The rights is priced at Rs.63/sh (including a premium of Rs.61 for each equity share). Record date - 10th June 2010. 

This will mean a 13.33 % of dilution of shares a nearly of 20,75,65,299 shares on the total outstanding shares of 155,67,39,743 shs. The rights issue will garner Rs.1307.66 crs to Suzlon enabling the company to reduce its total debts of Rs.10153 cr. Which will bring down the debts to Rs.8845.34 crs.

It should be noted that Suzlon has restructured its FCCBs at Rs.97.26/sh v/s Rs.359.68/sh ($/Re=44.60).

This means, total number of shares to be issued on conversion of FCCBs - 23,71,52,577 sh (a dilution of 15.23%). Yester day the share prices of Suzlon tanked 8% on bad results but the rights issue news will take back SUZLON to Rs.70