Indian wind energy company Suzlon Energy has raised INR 18bn (US$290 million) through the sale of a 23% stake to Dilip Shanghvi, the Indian billionaire who owns a pharmacy business.
Suzlon will continue to hold 24% stake in the company and will have management control, under the agreement. Dilip Shanghvi Family and Associates and Suzlon will also form a joint venture to develop 450 megawatts of projects.
“All the strategic initiatives are extremely crucial and will pave the way for our growth. These bold steps will strengthen our capital structure permanently, enabling significant deleveraging and liquidity to ramp up volumes rapidly,” said Tulsi Tanti, chairman, Suzlon.
Suzlon Energy’s shares reacted positively to the news, surging nearly 20% to INR 22.95.
Suzlon last month signed an agreement to sell its entire 100% stake its German wind-turbine making subsidiary Senvion SE to Centerbridge Partners LP for US$1.14 billion.