Wednesday, December 19, 2007

Suzlon raises Rs 21.83 bn via qualified institutional placement (QIP)

Suzlon Energy, India`s leading and world`s fifth largest wind power solutions company, through a qualified institutional placement (QIP) raised Rs 21.83 billion (about USD 552 million).
Tulsi R Tanti – chairman and managing director, Suzlon, said , ``with global awareness of wind energy growing, and an increasing demand for wind power solutions – we believe it is the right time to move quickly to seize this opportunity. Suzlon has grown at a very rapid pace over the past decade, and this strategic move will help us strengthen our balance sheet, improve gearing and give us the additional impetus to reach our growth targets. With the growth of the industry still restricted by supply-side constraints, our capacity expansion plans will be essential to meeting the rising global demand for wind power solutions.``

The company approved the issue of 11,386,000 new shares of Rs 10 each, at an issue price of Rs 1,917 a share. The new shares will aggregate to 3.80% of the post-issue equity base of the company.

The company intends to use the net proceeds of the issue either directly or through investments made in its subsidiaries or a combination of both towards capital expenditure and working capital requirements, repayment of outstanding loans, potential acquisition of shares of REpower from the Martifer Group and for general corporate purposes.

Shares of the company gained Rs 39.2, or 2.11%, to trade at Rs 1,901. The total volume of shares traded was 14,171 at the BSE. (10.27 a.m, Wednesday)

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