Suzlon’s promoter group sells stake
Suzlon’s promoters will infuse funds as part of the company’s corporate debt restructuring process
Mumbai:Tulsi Tanti, chairman and managing director of Suzlon Energy Ltd, said Wednesday the company’s promoter group sold a 2.11% stake for about ₹ 63 crore.
Suzlon’s promoters will infuse funds as part of the company’s corporate debt restructuring (CDR) process, it told BSE Ltd. The promoter group’s holding has fallen to 50.65% following the sale.
The company plans to use the money for operations and debt reduction.
On 30 October, Mint reported that Suzlon, which had debt of ₹ 13,017 crore at end-June, decided to suspend its guidance for this fiscal. Despite strong fundamentals and a $7.2 billion order book, liquidity constraints, a volatile market and the debt recast will hurt performance, the company said.
It had earlier forecast revenue of ₹ 27,000-28,000 crore for fiscal 2013 and a margin on earnings before interest and tax of 6%.
Suzlon, which has lost money for three years, failed to repay $209 million of debt on 11 October after bondholders rejected its request for a four-month extension. The default was the biggest on convertible bonds by an Indian firm.
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