HYDERABAD: Wind turbine maker Suzlon, which concluded the sale of its German subsidiary Senvion on Thursday, said it will retire Rs 6,000 crore debt besides pumping in Rs 1,200 crore towards expansion. The company has a total debt of over Rs 16,500 crore.
It may be noted that early this year, Suzlon sold Senvion to US private equity firm Centrebridge for about Rs 7,200 crore or 1 billion euros. Additionally, it will also earn 50 million euros, about Rs 350 crore, based on meeting certain performance criteria.
“We are raising about Rs 7,200 crore through sale of Senvion. About Rs 6,000 crore will be used to repay loans and Rs 1,200 crore will go to fund operations. We have issued foreign currency convertible bonds valued at Rs 3,000 crore and we hope this will be converted into equity next year,” the company said in a statement.
Senvion contributed about 65 per cent to its consolidated revenue. Following the Senvion deal, Sun Pharma Chairman Dilip Shanghvi and his family members picked up 23 per cent stake in Suzlon for over Rs 1,800 crore. The new investors will also help Suzlon to get fund-based and non-fund working capital for project execution.
“The successful completion of the transaction of Senvion sale paves the way for the group to ramp up volumes rapidly. We are now in a strong liquidity position to tap the opportunity available in India, other emerging markets and the US,” said Tulsi Tanti, Chairperson, Suzlon Group.
According to him, the sale was aligned with Suzlon’s strategy to reduce debt and focus on the home market and high growth market like the US and emerging markets like China, Brazil, South Africa, Turkey and Mexico.