Suzlon promoters sell 6.19% stake for `240 crore, stock falls to new low
The promoter group’s holding in the company now stands reduced to approx 44.46% of the paid-up capital
Mumbai: Wind turbine maker Suzlon Energy Ltd said on Thursday that promoters of the company had sold 109.9 million shares, representing approximately 6.19% of the paid-up capital, for ₹ 240.40 crore.
“Part of the funds so raised would be infused into the company by suitable mode at the earliest, subject to applicable law to comply with equity infusion requirement under CDR (corporate debt restructuring) mechanism as promoter contribution, which in current liquidity situation would also support the operations of the company," the company said in a filing to stock exchanges.
The remaining funds will be utilized to release pledged shares by repaying loans taken by promoters, the note said.
Following this sale, the promoter group’s holding in the company stands reduced to approximately 44.46% of the paid-up capital.
On 24 January, the Suzlon group got approval for a ₹ 9,500 crore debt restructuring programme from its domestic lenders. The lenders, a consortium of 19 banks, also agreed to enhance working capital facilities to the group by ₹ 1,800 crore and a 10-year back-ended repayment plan.
But as part of the CDR package, the group’s promoters are required to bring equity worth ₹ 250 crore into the company within a certain period.
The company had debt of ₹ 13,017 crore at end-June.
Suzlon has a two-year moratorium on principal and term-debt interest payments, a 3% reduction in interest rates, and a six-month moratorium on working capital.
The package includes a conversion of interest costs— ₹ 1,500 crore, which is two years of interest payments—into equity over the next two years, Suzlon said. Shares of the company fell 33.81% to close at 16.05. They earlier touched a low of 13.35. The Sensex closed 1.52% lower at 18,861.54 points.
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