Suzlon to raise Rs1,800 crore via rights issue
25 Sep 2008
Mumbai: Wind power major Suzlon Energy has proposed to raise up to Rs1,800 crore through issue of rights equity shares.
Suzlon's board of directors will meet on 27 September to consider the proposal to undertake a rights issue of equity shares to an extent of Rs1,800 crore, the company said in a filing with the Bombay Stock Exchange.
Earlier last month, the shareholders at their annual general meeting had authorised the board to raise Rs5,000 crore through issue of Foreign Currency Convertible Bonds (FCCBs), Global Depository Receipts or other securities.
Suzlon Energy, one of the world's biggest makers of wind turbines, has plans to invest $5 billion over the next five years in building and acquiring wind farms.
The company plans to make the investment partly by raising $3.5 billion in debt through its subsidiary Suzlon Green Power. The investment will be one of the biggest to date in the wind power sector.
Suzlon, which last year bought Hansen, a maker of gear-boxes for wind turbines, hopes the branching out into building wind farms will help the company's vertical integration.
Suzlon Energy is India`s largest and world's sixth largest wind-energy provider. The company provides total solutions in wind power generation with cohesive integration of consultancy, design, manufacturing, installation, operation and maintenance services. Its products include the integrated service for wind turbines and wind parks.
Shares of the company gained Rs2.55, or 1.32 per cent, closing at Rs196. The total volume of shares traded was 2,054,540 at the BSE.
