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New Delhi/Chennai, Dec.26 Suzlon Energy Ltd has said it has no plans to revive its Rs 1,800-crore rights issue, for which the Cabinet Committee on Economic Affairs (CCEA) gave its approval on Friday.

In October last, the company announced its decision to drop the rights issue citing adverse stock market conditions. The rights issue was to fund its acquisition of a 22.48 per cent stake of Martifer of Portugal in REpower Systems, a German wind turbine manufacturer.

Asked about the CCEA’s decision, a company spokesman said the does not intend to go ahead with the rights issue, as already announced.

CCEA has given its nod to Suzlon Energy, Ahmedabad, for its right issue of up to Rs 1,800 crore of equity shares to its existing shareholder, including residents outside India.

India’s largest wind energy company had announced plans to raise funds through a rights issue in September. Since the proposal exceeded Rs 600 crore limit and it also involved foreign investment it required the sanction of FIPB and CCEA.

Suzlon Energy had recently increased its stake in the German wind power company, REpower Systems AG which it acquired in May last year. By agreeing to acquire Portuguese company, Martifer’s 22.48 per cent stake, Suzlon was taking its total holding in REpower to about 90 per cent.

In August this year, the company obtained shareholders’ approval to raise a total of Rs 5,000 crore through issue of various securities, which the company had explained was only an enabling provision.

Earlier this month, Suzlon informed the stock exchanges that it had agreed to a revised payment schedule with Martifer for the latter’s stake in REpower. Accordingly, Suzlon will pay Martifer €65 million this month, €30 million in April 2009 and the final tranche of €175 million in May, after which its stake in the German company will be approximately 91 per cent.

More Stories on : Outlook | Rights Issue | Suzlon Energy Ltd | Non-conventional Energy

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