Suzlon Energy shares jump 5% as firm launches Rs 2,000 crore QIP

economictimes.indiatimes.com:

Suzlon Energy shares jumped 5% to the day's high of Rs 20 in Thursday's early trade after the company's Board approved to launch qualified institutional placement (QIP) 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 issue opened on Wednesday.

«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 to exchanges on Wednesday, post the market hours. The floor price for the same has been fixed at Rs 18.44, which is nearly a 6% discount from the current levels. The stock witnessed a strong buying action with over 6.49 crore shares changing hands on the NSE around 9:35 am.

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. 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 a presence in 17 countries across Asia, Australia, Europe, Africa and America.