Suzlon launches QIP to raise up to Rs 2,000 cr, sets floor price at Rs 18.44 per share

Suzlon Energy Ltd on Wednesday announced qualified institution placement (QIP) of equity shares to raise up to Rs 2,000 crore and has set floor price of Rs 18.44 per equity share. 

The QIP base size is up to Rs 1,500 crore with an oversubscription option of up to Rs 500 crore, said Suzlon in a stock exchange filing.

"Pursuant to Regulation 176(1) of the SEBI ICDR Regulations, the Company may offer a discount of not more than 5% on the floor price so calculated for the Issue," said Suzlon.

On Wednesday, Suzlon's scrip on BSE closed 5% higher at Rs 19.56.

QIP proceeds will be used by the wind energy firm for debt repayment and general corporate purposes.

Last month, Suzlon Energy registered a 96 per cent decline in consolidated net profit at Rs 101 crore in the April-June quarter.

The company had registered a consolidated net profit of Rs 2,433 crore in the year-ago quarter, an investors' presentation showed.

The company's net revenue in the first quarter of this fiscal also came down to Rs 1,348 crore from Rs 1,378 crore in the year-ago period.