Suzlon looks to raise up to Rs 1,800 crore via QIP

economictimes.indiatimes.com:

Suzlon Energy is planning to hit the public market this month to raise ₹1,500-₹1,800 crore by selling shares to institutional investors, as the wind turbine maker looks to substantially reduce debt amid its ongoing efforts to turn around the business, said people aware of the development. The turbine maker, founded by the late Tulsi Tanti, has gone through two rounds of debt restructuring in its lifetime, the latest one in 2020 when its lenders decided to restructure the company's over ₹13,000 crore debt. From 2020, through the restructuring, promoter capital infusion and a rights issue, the company has brought down its gross debt to ₹1,806 crore as of June 30, 2023 and a positive consolidated net worth of ₹1,297 crore.

Suzlon is working with investment bank ICICI Securities on the qualified institutional placement, said one of the people aware of the development. «The company is likely to launch the deal in the second half of August. They are tapping domestic institutional investors and family offices for the QIP.» An email sent to Suzlon Energy did not elicit any response till press time on Tuesday.

ICICI Securities declined to comment. 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. Suzlon has seen its stock price increase by over 82% since the start of the calendar year to ₹19.38 on the BSE Tuesday, giving the company a market cap of nearly ₹24,000 crore.