Suzlon promoters offload 2.11%

Bangalore, DHNS:

Wind turbine manufacturer Suzlon Energy has raised Rs 63 crore by offloading promoter stake of 2.11 per cent in the company. Suzlon CMD Tulsi Tanti said on Wednesday that the company sold 3.75 crore shares to raise the funds under its corporate debt restructuring (CDR) plan.

Following Wednesday’s sale, the promoter group’s holding in Suzlon has been reduced to 50.65 per cent of the paid-up capital.

Suzlon has been in discussions with lenders for restructuring debt, including a two-year moratorium on repayment of its term loans.

In order to address its current debt burden of Rs 13,000 crore, including FCCB (Foreign Currency Convertible Bonds) obligations, the Pune-based company has been looking to infuse funds. The company plans to use these funds for business operations and debt reduction.

The Suzlon stock which opened at Rs 17.90 on the Bombay Stock Exchange on Wednesday, shrunk 1.68 per cent on the news of the stake sale to close at Rs 17.60. On the NSE, the stock witnessed record trade volumes in excess of 78 million shares during the day as it closed down 1.68 per cent at Rs 17.60.

In the 2012 September quarter, Suzlon reported consolidated net loss of Rs 807.74 crore and consolidated net profit of Rs 48 crore. Losses of around Rs 1,663 crore incurred in the first half of fiscal 2013, along with almost Rs 900 crore of interest cost half-yearly, has affected the operations of the company, according to analysts.

Suzlon currently has an order book of about Rs 37,290 crore (nearly $7 billion).