The Hindu Business Line : Suzlon raises Rs 2,183 cr thru QIP route

Global wind energy major Suzlon Energy Ltd has raised Rs 2,183 crore by selling shares to selected investors through the qualified institutional placement (QIP) route. The money thus raised will be used to repay part of the debt raised to fund the acquisition of REpower Systems AG of Germany.

The company has approved the issue of 11,386,000 new shares of Rs 10 each, at an issue price of Rs 1,917 translating to a premium of Rs 17.50 per share to the last traded price at the BSE. The new shares will aggregate to 3.80 per cent of the post-issue equity base of the company.

Suzlon also intends to use the net proceeds of the issue towards capital expenditure, working capital requirements, potential acquisition of shares of REpower from the Martifer Group and for general corporate purposes.

Mr Tulsi Tanti, Chairman and Managing Director, Suzlon, in a press release said that with the global awareness of wind energy growing there is an increasing demand for wind power solutions.

The company believes that it is the right time to move quickly to seize this opportunity. Suzlon has grown at a very rapid pace over the past decade, and this strategic move will help the company to strengthen the balance sheet, he said.

The scrip closed at Rs 1,899.50, an increase of 2.02 per cent over the previous close of Rs 1861.80, on the BSE today.

Related Stories:
Suzlon acquires REpower for € 1.35-b as Areva backs out
`REpower takeover won't affect Suzlon'

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