Shanghvi offers to buy another 26 pc stake in Suzlon Energy

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SME Times News Bureau | 15 Apr, 2015
Dilip Shanghvi Family and Associates have made an open offer to buy another 26 percent stake for Rs 2,837 crore in Suzlon Energy, a Pune-based wind energy leader ranked as world's 6th largest wind OEM in terms of cumulative capacity with 7.1 percent share and 7th based on market share of 4.9 percent in 2014.

According to a leading news website, shares of Suzlon Energy is to remain in focus, as the open offer from Dilip Shanghvi family and associates to buy another 26 per cent stake for ₹2,837 crore in the company begins on Wednesday.

The open offer price for 157.64 crore shares is Rs 18 per scrip.

Suzlon in February had signed definitive agreements with Dilip Shanghvi & Associates for investments of ₹1,800 crore, entailing 23 per cent equity holding. Following this, the open offer has become mandatory, according to SEBI norms.

Following the development, shares of Suzlon Energy had surged nearly 20 percent in February 16, adding Rs 1,089 crore to its market value, following definitive pacts with Dilip Shanghvi Family and Associates (DSA) for equity investments of Rs 1,800 crore.

More recently, HDFC Securities viewed that the company is on the "cusp of a turnaround" on the back of debt offloading and expectations of a favourable policy framework given the government's focus on renewable energy.

The company has recently received shareholders' nod for sale of its German arm Senvion and issue up to 100 crore equity shares on preferential basis.

The company has also revealed its plans to go for a hybrid model of wind and solar energy, whereby solar plants will be set up on the same land as wind turbines.

India has 22,000 MW, or 22 gigawatts (GW), of wind energy installation and a little over 3,000 MW of solar power plants in the country. The government seeks to scale up solar to 100 GW and wind to 60 GW by 2022, which will require investments of nearly $200 billion.