Mumbai, Sept. 25: Suzlon Energy, the Rs 7,000-crore wind power giant, plans to raise Rs 1,800 crore through a rights issue.
The companys board of directors will meet on Saturday to consider a proposal for the flotation of rights shares.
Observers said the money would be used to partly pay for its acquisition of a 90 per cent stake in German turbine maker REpower. The Suzlon stock fell 7.17 per cent today, closing at Rs 182 on the BSE.
The company has already raised funds through a combination of debt, foreign currency-denominated convertible debentures and qualified institutional placement.
In early September, Suzlon announced that it had struck a deal with Martifer for the acquisition of the Portuguese construction companys stake in REpower for nearly $400 million.
Acquiring Martifers 22 per cent stake in REpower will give Suzlon a 90 per cent stake in the company.
At the annual general meeting held last month, Suzlon shareholders approved plans to raise Rs 5,000 crore through FCCBs, global depository receipts or other securities.