Suzlon promoters sell shares worth Rs 178 cr

Source :BS Reporter / Mumbai March 15, 2011, 0:03 IST



Tulsi Tanti-owned Suzlon Energy has announced that two of its promoters sold 40 million shares in the company today, which accounts to 2.25 per cent of its paid-up capital.


Vinod Ranchhodhbhai HUF (Hindu undivided family) and Sanman Holdings Pvt Ltd, who form a part of the promoter group, sold two crore shares each. With this, the promoter group’s holding in the company reduced to 54.84 per cent of the paid-up capital.





“These shareholders have indicated to the company that primary intention of the utilisation of these proceeds is to extend financial support to the company by suitable mode, subject to applicable law, the company approving the same and receipt of all requisite approvals. The company plans to use these funds for strategic initiatives,” Suzlon said in a press release.

According to data available on the National Stock Exchange under the block deals, the promoters sold their shares at Rs 44.7 per share, thereby raising around Rs 178 crore.


Suzlon’s stock went down by 2.3 per cent in today’s trade, closing at Rs 46.4 per share, according to data available on the Bombay Stock Exchange.


The company refused to divulge details on the class of investors who have bought the shares. However, data available on NSE shows that Morgan Stanley Mauritius company bought 39 million shares today at Rs 44.7 per share.


In intra-day trade, the same company also sold 4.8 lakh shares of Suzlon at Rs 46.1 per share.
Analysts say that a year-and-a-half ago, Suzlon used the same strategy of selling promoter equity to retire some of its debt. However, this time around after its debt restructuring last year, its next payment is due only a year later.