Suzlon plans to raise Rs 5000 cr overseas

Suzlon Energy plans to raise Rs 5,000 crore to repay the loan taken for the acquisition of Hansen Transmissions and for expanding the capacity of its domestic manufacturing facilities.

Giving a breakup of the funds to be raised, chairman and managing director Tulsi R Tanti said, "Of the total amount, Rs 2,250 crore will be raised through foreign currency convertible bond (FCCB), while the rest may be through a combination of options including American depository receipts and global depository receipts among others".

The FCCB is expected in the first quarter of 2006-07 and the company plans to utilise around Rs 2,500 crore for backward integration projects at its domestic facilities and for working capital requirements.

The company expects a 19 per cent growth in net profit this year and the revenue contribution from Hansen to the group's top line to start from the first quarter of this financial year.

The company also expects its subsidiaries in the US (600 mw) and China (600 mw) to start operations from the second quarter of this year.

While the US facility will require an investment of $25 million, the Chinese unit will entail $60 million.