Allots 3.19 cr shares to PE company.
Chennai, Oct. 11
Suzlon Energy on Monday said that it had bought out IDFC Private Equity's stake in its forgings subsidiary. In exchange, Suzlon would allot shares to IDFC Private Equity.
The Rs 2 Suzlon stock was up a little over two per cent on NSE on Monday, to close at Rs 58.75, after touching a high of Rs 60.30.
In an announcement to the stock exchanges, Suzlon said its board approved a proposal to buy 4.12 crore shares of Rs 10 each, held by IDFC PE in SE Forge Ltd, a subsidiary of Suzlon, where the sale consideration would be met through an issue of equity shares in Suzlon to IDFC PE.
The board approved another proposal to allot 3.19 crore shares of Rs 2 face value in Suzlon to IDFC PE. After the allotment of these shares, IDFC PE will hold a 1.8 per cent stake in Suzlon.
IDFC PE had invested Rs 400 crore in September 2008 for a 17.1 per cent stake in SE Forge Ltd, which had forgings and foundry facilities in Coimbatore and Vadodara.
A press release issued then said: “The move is planned to establish a separate and independent entity of SE Forge for its customers, investors, and allow the company to grow with a business plan to cater to the demand for specialised components for the wind industry and also other sectors outside the wind energy sector with a dedicated professional management.”
Suzlon's holding had then dropped to 82.9 per cent. With this buy-out, SE Forge would become Suzlon's wholly-owned subsidiary.
Suzlon's board also decided to seek its shareholders' approval, through a postal ballot, to increase its authorised share capital from Rs 445 crore to Rs 700 crore; issue securities up to Rs 5,000 crore; and, increase the borrowing limits from Rs 7,000 crore to Rs 10,000 crore.