Suzlon takes the QIP route to raise Rs 2,183 cr

MUMBAI: Suzlon Energy, India’s leading and world’ fifth-largest wind power solutions company, has raised Rs 2,183 crore through a qualified institutional placement (QIP) of shares.

The company has offered 11,386,000 shares at Rs 1,917 per share, a 3% premium to the closing price of Rs 1,861.80 per share on the date of QIP (December 18). The new shares will aggregate to 3.80% of the post-issue equity base of the company.

The funds from the issue will be used for working capital, repayment of outstanding loans and for acquiring remaining shares of German company Repower from Martifer Group.

“With the growth of the industry still restricted by supply-side constraints, our capacity expansion plans will be essential to meet the rising global demand for wind power solutions,” said Suzlon CMD Tulsi R Tanti.

The QIP issue closed on December 18 and the settlement is expected to take place by December 20. These equity shares will be listed both on NSE and BSE. On Wednesday, the shares of Suzlon rose 2.02% to Rs 1,899.50 on BSE, recovering partially from the one month fall.

Last month, the company had raised E400 million by listing its Belgium-based wholly-owned subsidiary Hansen Transmissions International NV on the London Stock Exchange (LSE).

Suzlon had acquired Hansen in 2006 for E465 million from Allianz Capital Partners and Apax Partners World-wide.
Citigroup and DSP Merrill Lynch acted as global co-ordinators and bookrunners for the QIP issue, with JM Financial as joint bookrunner and YES Bank as the co-bookrunner.