....According to two persons, the "investors" would put Rs 2,000 crore into Suzlon EnergyBSE 1.42 % and the group's unlisted wind farm business. It's believed that the investors will get a 24 per cent stake in the listed company for Rs 1,600 crore, while Rs 400 crore would be invested for a 50 per cent stake in the wind farm business. The transactions would take place through preferential allotment of shares. The Sun Pharma group refused to comment; a Suzlon spokesperson said, "As a policy, we do comment on market speculation."
Earlier this month, Tulsi Tanti, the promoter of Suzlon, was spotted at an investor conference held by Antique, a brokerage firm, explaining the company's future plans. Antique is owned by Sudhir Valia, who is on the board of Sun Pharma, the country's largest pharma company.
If the deal materialises, the fund infusion would help Suzlon bring down its debt, which was at Rs 17,000 crore at the end of September 2014. The company plans to pay off about Rs 6,000 crore from the proceeds of the sale of its German business in January. Of the balance Rs 11,000 crore debt, Rs 9,000 crore is foreign currency loans (including Rs 3,000 crore of convertible bonds). Most of the remaining debt is from public sector banks like SBI, Bank of Baroda, Punjab National Bank and Indian Overseas Bank.
A lower debt would free credit lines and help the company grow its business in India and emerging markets and win back its market share in India.
For the Sun Pharmaceutical group, this will mark an entry into the renewable space, one of the key focus areas of the new government.
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