March 8, 2013
Suzlon Group: Update on equity issuance under CDR
- Allotment of equity to lenders under CDR
- Initiates process for shareholder approval through postal ballot
- Will increase total share base from ~177 cr to ~219 cr by April, 2013
- Will improve leverage position in terms of debt-to-equity ratio
Pune: Suzlon Group, the worlds fifth largest wind turbine maker, today announced
the approval of the Board for various decisions pertaining to equity issuance under
the CDR scheme.
Under these, the company will seek approval of shareholders through postal ballot
for key measures, including the allotment of equity to lenders under the CDR
scheme, increase in share capital of the company and sale of undertakings.
Speaking on the development, Mr Kirti Vagadia CFO, Suzlon Group, said:
While this is an important step for the company to complete the various aspects of
the CDR scheme, it is also a key step towards improving the financial health of the
company. We anticipate that with these steps we will, by mid-April 2013, improve
our leverage position in terms of our debt-to-equity ratio.
We believe that by our lenders taking an equity position, in addition to providing
critical financial support, is an important signal of their confidence in our
fundamental viability as a business, and our long term outlook. Along with the other
enabling resolutions around the acquisition of outstanding shares in a subsidiary and
approval for sale of undertakings, these steps will help us realise greater efficiencies
and continue to normalize our business.
Notes to the editor:
- The conversion price for share issuance to lenders will be Rs 18.51 per-share, determined as per
SEBIs preferential pricing guidelines assuming 31st December, 2012 CD approval date - as the Relevant Date
- With these steps, and the approval for increase in the authorized share capital of the company, the
total share base is projected to increase from ~177 cr to
~219 cr by April, 2013, and ~291 cr by September, 2014
- Attached please find full notification on the Board approval by circular dated 8th February, 2013