Suzlon promoters sell shares to raise Rs 240 cr

Part of the funds to be infused into company by suitable mode at the earliest

The promoters of Suzlon Energy today said that they sold as much as 6.2% of the paid-up capital of the company, to raise Rs 240.4 crore.

“Part of the funds raised would be infused into the company by a suitable mode at the earliest. Balance funds would be utilised to release pledged shares by repayment of loans taken by promoters,” the company said, in a letter to the stock exchanges. Around 10.99 crore shares were sold by the promoters.

After this sale, the promoter group's holding is reduced to 44.46% of the paid-up capital. Suzlon said that this equity infusion will support the operations of the company in the 'current liquidity situation'.

Infusion of equity into the company by the promoter is one of the many conditions which are to fulfilled, as a part of Suzlon's corporate debt restructuring (CDR). Last month, 19 lenders of the company restructured Rs 9,500 crore of its debt on many strict conditions including sale of non-core assets and subsidiaries.

The CDR gave many relaxations to the company including a two year holiday on interest rates. This interest which accounts to Rs 1,500 crore will be converted into equity or equity-linked instrument over the next two years.  A few days back, Suzlon won an 103 megawatt order from Oil and Natural Gas Corporation (ONGC).