Azure’s $250 Million Rights Offer Open, To Close On Jan 24

NYSE listed Azure Power Global Ltd (NYSE:AZRE) rights issue has opened on January 7, with a target to rise upto $ 249.9 million.

Pursuant to the rights offering, each shareholder will get one non-transferable subscription right for every equity share held on the record date of January 6, 2022. Each right will entitle the holder to buy 0.3275 equity shares at the subscription price of $15.79 per whole equity share. Azure Power’s two largest shareholders – CDPQ Infrastructures Asia Pte Ltd with a 50.2% stake and OMERS Infrastructure Asia Holdings Pte Ltd with an equity interest of 19.3% – have both agreed to fully exercise all their basic subscription rights in this transaction.

The rights offering will expire on January 24, 2022, unless extended. On Friday, the firm’s stock price closed at $16.51 on the NYSE.

According to the firm’s prospectus, after estimated expenses of $4,500,000, it expects to receive net proceeds of approximately $245,438,599 or 245 million dollars. These will be used to fund future projects, potentially to purchase renewable assets, to pay off certain borrowings and for general corporate purposes. Upto $100,000,000 (100 million) of the net proceeds will go to repay amounts under a credit facility provided by The Hongkong and Shanghai Banking Corporation Limited, an affiliate of HSBC Securities (USA) Inc., on February 1, 2021, with a maturity date of February 2, 2022.

Azure Power recently got final go ahead on a critical project from SECI, in the form of a partial PPA for the 4 GW manufacturing linked tender it had won back in 2019. Besides that, M&A activity in the Indian renewables space is expected to heat up with larger players with access to cheaper funding making a big bid to make an impact. One of the largest, Renew Power, has already announced a fresh $400 million debt round this week.