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Mumbai: Shares in India's Suzlon Energy Ltd fell more than 7 per cent on Thursday after it said it would consider a rights issue to raise up to Rs18 billion ($390 million) Friday.
The world's fourth-biggest wind turbine maker did not say what it would use the funds for.
Suzlon had said earlier this month it had struck a deal with Martifer for an early acquisition of the Portuguese conglomerate's stake in REpower Systems for nearly $400 million (Dh1.4 billion).
Suzlon is just the latest Indian company to tap rights issues to raise funds as higher borrowing costs pinch.
Hindalco Industries Ltd, India's leading aluminium maker, on Monday launched a Rs50.5 billion rights issue, while Tata Motors, India's top vehicle maker, is set to open its Rs41.5 billion rights issue on Monday.
But turbulent market conditions are a concern, a trader said.
"People have concerns about any company that is looking to raise money in these market conditions," said an institutional sales dealer who asked not to be named.
"Even the Tata Motors offer doesn't look very exciting," he added.
Tata Motors, which is raising the money to help fund its $2.3 billion acquisition of Jaguar and Land Rover, had scaled down the size of its rights offer from Rs72 billion.
Indian companies have raised about $4.8 billion from rights issues until mid-August, Thomson Reuters data showed, topping the Asia-Pacific region, excluding Japan.
More such offers may be in the pipeline after the capital markets regulator recently eased rules for rights issues, cutting the timeline and changing the pricing conditions.
Shares in Suzlon were down 7.3 per cent at Rs 181.75 at 1019 GMT (2.19pm, UAE time), after falling quite low in a Mumbai market that was down 0.9 per cent.
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