The Hindu Business Line : Suzlon promoters sell 4.5% stake for Rs 665 cr

Mumbai, Sept 23 Ms Nidhi T. Tanti, Mr Brij J. Tanti and Mr Girish R. Tanti, who are among the promoters of Suzlon Energy, have sold 4.5 per cent of their holdings for Rs 665 crore. The total promoter group shareholding is now 53.08 per cent.

The money raised will be used for working capital and other funding requirements.

The Chairman and Managing Director, Mr Tulsi Tanti, said in a release, “The proceeds raised through the sale of minor stake are intended to be used primarily to infuse funds into the company as unsecured debt or equity.”

Company sources said seven crore shares were sold at Rs 95 each. Citigroup was the sole book runner for the transaction targeted at institutional investors.

An analyst said the stake sale would bring in some liquidity as Suzlon has been under stress due to its large debt of about Rs 13,000 crore. “If the company manages to sell its stake in Hansen Transmissions, it would bring down the debt significantly,” he said.

On May 13 and 25, the promoters had sold two and four per cent of their stakes respectively. In the case of the four per cent sale, the Rs 522-crore raised helped complete the long-pending acquisition of REpower of Germany. The shares then were sold at about Rs 87 apiece.

The Suzlon scrip closed at Rs 94.65 on Wednesday, a fall of 6.10 per cent over the previous close of Rs 100.80.

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