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Suzlon to raise Rs 5,000cr for expansion, list arm on LSE

Suzlon to raise Rs 5,000cr for expansion, list arm on LSE
PTI
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First Published: Tue, Oct 23 2007. 03 48 PM IST
Updated: Tue, Oct 23 2007. 03 48 PM IST
Mumbai: Country’s largest wind power equipment maker Suzlon Energy today said it will raise up to Rs5,000 crore through issue of equity-linked instruments in domestic and overseas markets for expansion purposes, including raising production capacity to 5,700 MW.
The company had earlier received approval from shareholders for raising Rs5,000 crore in international and Indian markets. Of this, the company has utilised about Rs2,000 crore by issuing Foreign convertible currency bonds (FCCBs) of $500 million.
“Considering the expansion requirements, the board has enhanced the unutilised limit of Rs3,000 crore to Rs5,000 crore for issuance of equity shares, FCCBs, Global Depository Receipts and American Depository Receipts,” it said in a statement to BSE.
The company also plans to list its Belgium-based wholly-owned subsidiary Hansen Transmissions International NV on the London Stock Exchange (LSE), for which the board’s approval has been received at a meeting held today.
The company had acquired Hansen Transmissions International, a wind turbine gearbox manufacturer, in March last year for €465 million.
Suzlon’s board also approved investment of Rs2,600 crore over next two years for raising the company’s global manufacturing capacities by 3,000 MW to 5,700 MW to cater to the increasing market share and demand.
“The said manufacturing capacities are proposed to be increased in one or more of the existing subsidiary companies in India, which are presently in process of setting up their respective establishments at strategic locations in India,” Suzlon Energy said in a separate filing to the exchange.
A proposal for investment in one of the wholly-owned subsidiaries to increase foundry, forging and machining facilities was also approved by the board.
Further, proposal for raising Hansen Transmissions International’s capacities to manufacture gear box and parts also secured the board’s nod.
The company also proposes to to amend the Capital Clause of the Memorandum of Association by re-classifying unissued preference shares of Rs100 each in the authorised share capital of the company to equity shares of Rs2 each.
It plans to sub-divide equity shares of Rsl0 each to face value of Rs2 each and has decided to conduct a postal ballot for seeking approval of the shareholders for the purposes.
Shares of the company were trading 12.17% up at Rs1,778 each in afternoon trade at BSE.
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First Published: Tue, Oct 23 2007. 03 48 PM IST
More Topics: Suzlon | Wind Energy | Expansion | Economy | Currency |