Suzlon stock soars 20% as Dilip Shanghvi picks up stake1 min read . Updated: 17 Feb 2015, 01:04 AM IST
Dilip Shanghvi will buy up to 1,576.4 million shares of the Suzlon Energy at Rs18 a share for a total of Rs2,837.59 crore
Mumbai: Shares of Suzlon Energy Ltd rose as much as 19.84% on Monday after the company said on Saturday that Dilip Shanghvi Family and Associates (DSA) will invest ₹ 1,800 crore in it.
DSA will pick up 23% stake in the company and make an open offer to the shareholders of Suzlon. DSA will buy up to 1576.4 million shares of Suzlon at ₹ 18 apiece for a total of ₹ 2,837.59 crore, the BSE notice said. Existing promoters, Tulsi Tanti and family, will continue to hold 24% in the company and retain management control.
Management control remains with the Tanti family by virtue of pooling arrangement for voting, the wind turbine maker said in a statement.
Last month, the Suzlon group had signed a binding agreement with Centerbridge Partners LP to sell 100% stake in Senvion SE, a wholly owned subsidiary of the Suzlon group. The deal is valued at €1 billion (around ₹ 7,100 crore today) equity value in an all cash transaction.
Both transactions are being seen as a way to strengthen the company’s balance sheet.
Suzlon Energy reported a consolidated loss of ₹ 6,538.68 crore for the December quarter, as against a consolidated loss of ₹ 1,075.25 crore in the year-ago period. Its total income fell marginally to ₹ 4,977.18 crore during the December quarter, as against ₹ 5,052.2 crore in the year-ago period. As of March 2014, the latest data available, the group had debt of ₹ 17,053 crore.
On Monday, the Sensex rose 0.14% to 29,135.88 points.