Suzlon kicks off Rs 2,700 cr institutional issue
The country’s largest wind-power equipment maker, will kick off its over Rs 2,700-cr QIP issue on Monday, reports BS Srinivasalu Reddy.business Updated: Dec 09, 2007 22:42 IST
Suzlon Energy, the country’s largest wind-power equipment maker, will kick off its over Rs 2,700-crore qualified institutional placement (QIP) issue on Monday.
“Suzlon is launching its QIP issue on Monday for raising about $700 million to basically fund a part of its huge expansion plans,” a merchant banker told the Hindustan Times.
A company spokesman, however, declined any comment stating that the company was in a ‘silent period’ pending the listing of Hansen Transmission International (HTI), its 100 per cent Belgium-based subsidiary, on the London Stock Exchange on Tuesday.
In its October meeting, the company’s board had enhanced the ceiling for unutilised fund raising capacity to Rs 5,000 crore through various means to fund expansion plans, from Rs 3,000 crore that was available.
The preferred fund raising channels for the company included equity shares, Foreign Currency Convertible Bonds (FCCBs), Global Depository Receipts (GDRs) and American Depository Receipts (ADRs).
The capacity expansion was sought for one or more of the company’s existing subsidiaries in India, which are presently in the process of setting up their respective establishments at strategic locations.
It also has plans to invest about Rs 2,600 crore over the next two years to raise global manufacturing capacities by 3,000-5,700 mega watts to address its increasing market share and demand.
It would also invest in a wholly owned subsidiary to increase foundry, forging and machining facilities. Another proposal to raise HTI’s capacities to manufacture gear boxes and other parts have been given the nod.
HTI completed the initial public offering process in London at an offer price of 175 pence per share on Saturday. The post-issue market capitalisation of HTI is euro 1.6 billion at the issue price.