Suzlon Energy board approves QIP to raise up to Rs 2,000 crore

economictimes.indiatimes.com:

Suzlon Energy has approved launching qualified institutional placement to raise up to Rs 2,000 crore. The QIP will be of Rs 1,500 crore, with an oversubscription option of Rs 500 crore. «The securities issue committee of the Board has 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,» the company said in a filing.

The floor price for the same has been fixed as Rs 18.44, which is nearly 6% discount from the current levels. QIP is a capital-raising tool through which listed companies can sell shares, fully and partly convertible debentures, or any securities, other than warrants that are convertible into equity shares, to qualified institutional buyers. The company said it may offer a discount of 5% on the floor price under the SEBI rules.

Following a turnaround in the company's fortunes led by debt reduction, a strong order book, and a return to profitability, the stock has jumped more than 200% in the last year. It has doubled investors' wealth in the last six months. Suzlon is a renewable energy solutions provider with presence in 17 countries across Asia, Australia, Europe, Africa and America.

It has become the first Indian wind energy company to reach 20 GW of worldwide wind energy installation and has a 33% cumulative wind energy market share in India. For the recent first quarter, the company's profit declined 64% on a sequential basis to Rs 101 crore, while its revenue from operations dropped 20% quarter-on-quarter (QoQ) to Rs 1,378 crore. «After a sustained effort to reduce debt in FY23, which has resulted in a healthier and sustainable balance sheet for the company, our focus in FY24 remains