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He mentioned the overall debt of the corporate was Rs 3,200 crore as of June quarter 2022-23 and the corporate would have the ability to repay the remaining debt within the subsequent eight years.
Mody emphasised that the corporate would have a lot leaner, more healthy and higher steadiness sheet after the difficulty and there will probably be no decline within the promoters’ holding after the difficulty.
About an earlier occasion of decline in promoter holding, he mentioned it occurred on account of conversion of sure bonds (debt) into fairness (underneath the debt restructuring plan).
Earlier this month, Suzlon Power had mentioned its promoters had reconfirmed their participation within the rights challenge, after the demise of its founder and CMD Tulsi Tanti.
Tanti died on October 1.
As per the letter of provide, the corporate will challenge as much as 240 crore partly paid-up fairness shares for money at a value of Rs 5 per share (together with a premium of Rs 3 per rights fairness share) aggregating to Rs 1,200 crore.
The difficulty will probably be within the ratio of 5 rights fairness shares for each 21 absolutely paid-up fairness shares held by eligible shareholders on the document date of October 4, 2022.
The final date for on-market renunciation of rights entitlements is October 14, 2022. The promoters and promoter group have confirmed their participation and they are going to be absolutely subscribing to the extent of their rights entitlement, it had mentioned.
Funds raised via the difficulty will probably be used for compensation or pre-payment of a portion of sure excellent borrowings availed by the corporate and its subsidiaries and for basic company functions.
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