Suzlon pares loss; plans to raise Rs5,000 cr through public issue
26 July 2014
Wind turbine maker Suzlon Energy proposes to raise up to Rs5,000 crore through a public issue of securities after the company reported a reduced net loss Rs750.74 crore in the three months ended June 2014.
Suzlon's board of directors approved the proposal to raise up to Rs5,000 crore at its meeting on Friday.
It is an "enabling resolution to facilitate the company to raise funds at an appropriate time should that be required," Suzlon said in a regulatory filing today.
Suzlon Energy saw its net loss come down to Rs750 crore from Rs1,058.90 crore in the same period a year ago. The figures are after taking into account the share in minority interest, the company said in a statement.
In the first quarter (ended June) of current fiscal, the firm's total income rose to Rs4,671.99 crore from Rs3,896.71 crore in the year-ago period, reflecting an increase of about 20 per cent.
"The recent union budget includes several policy measures which will have a positive impact on the wind energy sector in India.
"Suzlon is well positioned to tap these opportunities by leveraging on its strengths. We stand committed to build on our technological edge and offer new age products and best in class services," Suzlon Energy Chairman Tulsi Tanti said.
During a meeting held yesterday, the board also gave its nod for increasing the company's authorised share capital from Rs1,100 crore to Rs1,500 crore.
"Issue of equity shares of the company on preferential basis... For the sacrifice by ICICI Bank Ltd in terms of the CDR (Corporate Debt Restructuring) package to an extent of Rs6.40 crore," was also approved, said the filing.
All these proposals are subject to nod from shareholders.