The Hindu Business Line : Suzlon gets shareholder nod to raise Rs 5,000 cr

Wind power
To repay debt of Rs 2,500 cr raised to finance overseas buy
Plans to expand order book by 40 pc
Company focus on growing in US, China, and Europe

New Delhi , June 28

Suzlon Energy Ltd, a wind power company, today said that its shareholders have cleared a special resolution enabling the firm to raise up to Rs 5,000 crore through the issue of a combination of equity and debt-linked instruments.

The company told the BSE that its shareholders have passed a special resolution by way of postal ballot for raising the amount through the issue of equity shares, global depository receipts (GDRs), American depository receipts (ADRs), foreign currency convertible bonds (FCCBs), and secured premium notes.

A decision to raise the existing borrowing limit of the company to Rs 5,000 crore, beyond the aggregate of the paid-up capital and free reserves, also got shareholder approval, the company said.

Suzlon, the world's fifth largest wind turbine generator (WTG) company and the largest WTG manufacturer in India, supplied equipment totalling 970 MW in the last fiscal, including 88 MW supplied to international customers.

Last month, Mr Tulsi R. Tanti, Chairman and Managing Director, had said at a news conference that of the Rs 5,000 crore, a sum of $500 million (around Rs 2,300 crore) would be raised through FCCBs, likely in the June quarter.

This amount will be used to repay debt worth Rs 2,500 crore raised earlier this year to finance the acquisition of an overseas subsidiary.

The remaining Rs 2,700 crore would be raised through a GDR or an ADR issue, to be decided by the company at a later stage, he had added.

Mr Tanti said that the company was targeting topline growth of 25 per cent in the current fiscal.

Suzlon expects to expand its order book by 40 per cent in 2006-07 from Rs 3,303 crore as on April 1.

The company is focusing on growing its business in the US, China, and Europe markets.

The Suzlon stock, which opened at Rs 870 on the BSE today, ended at Rs 875.10, down from Rs 890 yesterday.

The stock, listed on the exchanges on October 19, 2005 at Rs 565, touched its highest level of Rs 1,429.95 on April 7.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Suzlon gets shareholder nod to raise Rs 5,000 cr

Ratan Tata meets Maran

Qualcomm to help set up CDMA handset unit

Plaints filed against H-1B specific ads

Close-ended equity funds may give rise to new wave of NFOs

India Infoline: Up on value pick

GE Shipping sails on `demerger nod'

Pfizer Q2 net soars 132 pc on plant sale

ADR/GDR rules relaxed for unlisted cos

Edgy Sensex ends marginally weak

Derivative transactions: RBI says banks must make full disclosure

Tata Coffee mulls SPV to fund Eight O'Clock buy

Beware of malicious attacks via hoax SMS

Centre notifies ban on pulses export

Pocket