Suzlon Energy to pare debt of Rs 583.5 crore after rights issue

Suzlon Energy plans to retire debt of Rs 583.5 crore and save on interest payments by using a part of the Rs 1,200 crore to be raised from the rights issue of the renewable energy solutions firm.

The company has proposed a rights issue of 240 crore shares at an issue price of Rs 5 per share and an entitlement ratio of 5:21 (5 rights equity shares for every 21 fully paid-up equity shares).

A total of Rs 900 crore from the rights issue, which opened on Tuesday, would be utilised for debt repayment.