IDFC PE picks up 17% stake in SE Forge for Rs400 cr

IDFC PE picks up 17% stake in SE Forge for Rs400 cr
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First Published: Mon, Sep 29 2008. 02 43 PM IST
Updated: Mon, Sep 29 2008. 02 43 PM IST
PTI
New Delhi: IDFC Private Equity today said it has picked up 17% stake in SE Forge Ltd, a subsidiary of Suzlon Energy Ltd (SEL), for Rs400 crore.
“We have invested Rs400 crore in SE Forge Ltd through an equity investment. We have picked up about 17% equity of the subsidiary of Suzlon Energy Ltd,” IDFC Private Equity (IDFC PE) President and CEO Luis Miranda told PTI.
The investment compliments the company’s large portfolio in the infrastructure sector. This is the first investment from Fund III and the largest investment to date, he added.
An official of SEL said the Rs400 crore raised through the PE investment would be utilised for capacity expansion and operational expenses.
SE Forge has set up two facilities - a 120,000 MT foundry in Coimbatore and a 42,000 rings per annum ring-rolling foundry unit in Vadodara.
Both the units are already commissioned and commercial production is expected to start from November 2008.
SEL claims to be the fifth largest wind turbine manufacturing company in the world in the world. SE Forge is promoted by SEL with the objective of manufacturing and machining large forging and casting products catering primarily to the wind power industry.
Further, the board of Suzlon Energy today approved the shareholders’ agreement to facilitate IDFC Private Equity to invest Rs400 crore in SE Forge Ltd. Post approval Suzlon’s shareholding in SE Forge stood reduced to 82.9%.
The wind power major has also received board approval for raising up to Rs1,800 crore through allotment of shares to the existing shareholders on rights basis.
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First Published: Mon, Sep 29 2008. 02 43 PM IST