SUZLON ENERGY : RIGHTS ISSUE DETAILS

SUZLON ENERGY gave rights issue in the ratio of 2 new shares for 15 held at Rs.63/share(Face Value-Rs.2 and premium of Rs.61), the record date is fixed at 10th June 2010, Suzlon goes ex- rights on 9th June 2010. The Issue Opens at 18th JUNE 2010, Closes on 2nd JULY 2010, Last date for receiving request for split form 25th JUNE 2010.

Here are some details about how will the proceeds from the issue will be utilised -

Gross proceeds of Issue  -                Rs. 1307.66 Cr.

Discharge of Promoter loans

(towards Promoter entitlement) -      Rs. 694.06 Cr.

Issue Expenses                                  Rs. 10.00 Cr.

Net Proceeds                                      Rs. 603.60 Cr.

*The amount of promoter loan Rs. 1175 Cr.

CAPITALIZATION STATEMENT

STANDALONE - DETAILS  

                                   

SHORT TERM DEBT -  Rs.1883.52 Cr.

LONG TERM DEBT - Rs.5717.70 Cr.

TOTAL DEBT - Pre issue- Rs.7601.22 Cr ; Post issue - Rs.6426.22 Cr.

SHARE CAPITAL - Pre issue - Rs.311.35 Cr ; Post issue - Rs.352.86 Cr.

ESOPs O/s - Pre issue -Rs.15.68 Cr ; Post issue -Rs.15.68 Cr

RESERVES & SURPLUS - Pre issue - Rs.5277.24 Cr ; Post issue - Rs.6543.39 Cr.

TOTAL SHARE HOLDERS FUND - Pre issue -Rs.5604.31 Cr ; Post issue -Rs.6911.97 Cr.

TOTAL DEBT/EQUITY RATIO - Pre issue - 1.36 ; Post issue - 0.93

CONSOLIDATED -  DETAILS  

SHORT TERM DEBT-  Rs.3337.11 Cr.

LONG TERM DEBT - Rs.9330.83 Cr.

TOTAL DEBT - Pre issue -Rs.12667.94 Cr ; Post issue -Rs.11492.94 Cr.

SHARE CAPITAL - Pre issue -Rs.311.35 Cr ; Post issue - Rs.352.86 Cr.

ESOPs O/s - Pre issue -Rs.15.67 Cr ; Post issue - Rs.15.67 Cr.

RESERVES & SURPLUS - Pre issue -Rs.6274.21 Cr ; Post issue - Rs.7540.36 Cr.

TOTAL SHARE HOLDERS FUND - Pre issue -Rs. 6601.27 Cr ; Post issue -Rs.7908.93 Cr.

TOTAL DEBT/EQUITY RATIO - Pre issue - 1.92 ; Post issue - 1.45.

Now, when the markets price per share are quoting at Rs.53/sh why would anyone subscribe to its Rights issue...........This issue is only meant for SUZLON Promoters....same story as Fortis health care..here SUZLON's promoters will subscribe all 20,75,65,299 shs at Rs.63/sh , raising their holding to 103,38,33,299 shs from 82,62,68,000 shs from 53.08% to 58.59% on new Eq of 176,43,05,042 shs from 155,67,39,743 shs. But will surely reduce some of its debts...which is good news.

SUZLON DECLARES RIGHTS ISSUE AT Rs.63

As declared earlier Suzlon energy declares rights issue of equity shares of Face value Rs.2.

 Share holders will get 2 shares for every 15 shares held. The rights is priced at Rs.63/sh (including a premium of Rs.61 for each equity share). Record date - 10th June 2010. 

This will mean a 13.33 % of dilution of shares a nearly of 20,75,65,299 shares on the total outstanding shares of 155,67,39,743 shs. The rights issue will garner Rs.1307.66 crs to Suzlon enabling the company to reduce its total debts of Rs.10153 cr. Which will bring down the debts to Rs.8845.34 crs.

It should be noted that Suzlon has restructured its FCCBs at Rs.97.26/sh v/s Rs.359.68/sh ($/Re=44.60).

This means, total number of shares to be issued on conversion of FCCBs - 23,71,52,577 sh (a dilution of 15.23%). Yester day the share prices of Suzlon tanked 8% on bad results but the rights issue news will take back SUZLON to Rs.70

SUZLON ENERGY ANNUAL RESULTS INSIGHTS FY 2009-2010

SUZLON ENERGY ANNUAL RESULT INSIGHTS – FY 2009-2010
NET DEBT REDUCTION- FY 10
- Consolidated net debt as on 31st March 2010 - Rs. 9764 cr.
- Consolidated net debt as on 31st December 2009 - Rs. 10488 cr.
- Net consolidated debt reduced by Rs. 724 cr.
- Net debt of Suzlon Energy Wind as on 31st March 2010 – Rs.10153 cr.
- Net debts reduce by 17% a Rs.2036 cr Y-O-Y.
- HANSEN STAKE NOW AT 26.06%.
- REpower Systems AG stake now at 90.50% v/s 90.71% (due to further issuance of shares as ESOPs)
- RIGHTS ISSUE ANNOUNCED.

SALES FIGURES- FY 10
- India = Q4 FY10- 361 Mw; FY10 - 688 Mw v/s 749 Mw FY09.
- Internationally = Q4 FY10- 290 Mw; FY10- 773 Mw v/s 2041 Mw FY09.
- Total Mw Sales (Suzlon Wind) – Q4 FY10 - 650 Mw; FY10- 1460 Mw.

ORDER BOOK – FY 10
- As on 26th May 2010 – 1126 Mw.
- Order book value as on 26th May 2010 – Rs. 6174 cr.
- Average realisation of Order Book -
 INDIA – Rs. 5.48 cr/Mw.
 INTERNATIONAL – Rs. 5.50 cr/Mw.
 RE Power order book as on 31st March 2010 – Euro 2.1billion(US$2.6bn).

REVENUE - FY 10
- Suzlon Wind Business Revenue – Q4 FY10- Rs.4150 cr; FY10- Rs.9635 cr.
- Consolidated Revenue – Q4 FY10- Rs.6084 cr; FY10- Rs.20620 cr.
- Karnataka wind energy tariff Rs. 3.70/Kwh from Rs. 3.40.
- Gujarat wind energy tariff Rs. 3.56/Kwh from Rs. 3.50/Kwh.
- Global Market Share – Suzlon + RE power – 9.8%; GE wind – 18.6%; Vestas – 19.8%; Siemens – 6.9% as on 31st March 2010.

OTHER FINANCIAL DETAILS -
- Net operating working capital as on 31st March 2010 – Rs. 5103cr v/s Rs.6153 cr.
- Absolute reduction of working capital of Rs. 1050 cr from March 2009 levels.
- Acquition Loans – Rs.2083 cr.
- FCCBs – Rs.2151 cr.
- Capex &Working Capital & Other Loans – Rs.6284 cr.
- Gross External Debt – Rs.10519 cr.
- Loans from Promoter group – Rs.1175 cr.
- Cash Holdings – Rs.1541 cr.
- NET DEBT – Rs. 10153 cr.
- NET EXTERNAL DEBT – Rs.8973 cr.
- Gross Profit/Mw - 9m FY 2009-10 – Rs. 2.03 cr v/s Rs. 2.07 cr in 9m FY 08-09.

DEBT MANAGEMENT EXERCISE –
- DEBT REDUCTION –
- Refinanced acquisition loan of US$465m in Rupee-denomination from SBI.
- Rupee loan refinancing of Rs.10624 Crs done from SBI.
- Rs.6587 cr & trade credits facilities (non-fund based) of Rs.3037 Crs.
- Holiday of 2 years in principal repayments done.
- Issue of GDRs for USD 108 million (Q2 FY 2009-10).
- FCCBs restructuring by removal of covenants & reduced the conversion price to Rs.97.26/sh from Rs.359.68/sh at Rs.44.60/US$.
- Infusion of funds through FCCBs – US$ 90 million.
- Total number of Shares to be issued on conversion of FCCBs – 237152577. (a dilution of 15.23%)
- Infusion of funds by promoters – Rs.1175 Crs.