Shares in troubled turbine manufacturer Suzlon were trading up almost 8% after the company said it will convene a board meeting to discuss a share sale as part of a wider rescue plan.
The India-based outfit will hold the meeting on Thursday to “consider and approve the issuance of equity shares”, “equity linked instruments” or “convertible securities”, according to a note from the company.
The discussions are linked to a “proposed resolution plan”, the details of which have not been fully disclosed. The State Bank of India has approved the proposals.
Any placement will need the approval of a “consortium of lenders” and shareholders at an EGM, added the note.
Suzlon currently is carrying some €1.5bn in debt. Earlier this month, it posted a RS743 crores (€95m) loss in the quarter ending 31 December 2019 as its troubled turbine business continued to operate at a “subdued level”.