Business Daily from THE HINDU group of publications
Tuesday, Oct 12, 2010
ePaper | Mobile/PDA Version | Audio | Blogs

Foreign Exchange

Group Sites

Markets - Stocks
Corporate - Mergers & Acquisitions
Get Latest Quote and Company Info
Suzlon buys out forging arm's stake from IDFC Private Equity

Allots 3.19 cr shares to PE company.

Our Bureau

Chennai, Oct. 11

Suzlon Energy on Monday said that it had bought out IDFC Private Equity's stake in its forgings subsidiary. In exchange, Suzlon would allot shares to IDFC Private Equity.

The Rs 2 Suzlon stock was up a little over two per cent on NSE on Monday, to close at Rs 58.75, after touching a high of Rs 60.30.

In an announcement to the stock exchanges, Suzlon said its board approved a proposal to buy 4.12 crore shares of Rs 10 each, held by IDFC PE in SE Forge Ltd, a subsidiary of Suzlon, where the sale consideration would be met through an issue of equity shares in Suzlon to IDFC PE.

The deal

The board approved another proposal to allot 3.19 crore shares of Rs 2 face value in Suzlon to IDFC PE. After the allotment of these shares, IDFC PE will hold a 1.8 per cent stake in Suzlon.

IDFC PE had invested Rs 400 crore in September 2008 for a 17.1 per cent stake in SE Forge Ltd, which had forgings and foundry facilities in Coimbatore and Vadodara.

A press release issued then said: “The move is planned to establish a separate and independent entity of SE Forge for its customers, investors, and allow the company to grow with a business plan to cater to the demand for specialised components for the wind industry and also other sectors outside the wind energy sector with a dedicated professional management.”

Suzlon's holding had then dropped to 82.9 per cent. With this buy-out, SE Forge would become Suzlon's wholly-owned subsidiary.

New plans

Suzlon's board also decided to seek its shareholders' approval, through a postal ballot, to increase its authorised share capital from Rs 445 crore to Rs 700 crore; issue securities up to Rs 5,000 crore; and, increase the borrowing limits from Rs 7,000 crore to Rs 10,000 crore.

More Stories on : Stocks | Mergers & Acquisitions | Bearings | tings & Forgings | Suzlon Energy Ltd

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

Stories in this Section
Corporate News

Cairn India open offer price is final
6 lakh investors exit MF accounts
CMC performance indicates revival in IT spends
Suzlon buys out forging arm's stake from IDFC Private Equity
Sparsh BPO board approves delisting plan
Hind Dorr-Oliver may offer stake to investor
‘Sensex won't repeat the crash of 2008'
Prestige Real Estate Projects IPO — Avoid
Tata Metaliks (Rs 157.6): Buy
Day Trading Guide
Gallantt Ispat jumps 56% on listing day
VA Tech Wabag offer of withdrawal option ends
Public sector insurers waiting for Insurance Bill, IPO guidelines
Gyscoal Alloys public offer at Rs 65-71

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2010, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line