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Wind energy turbine maker Suzlon Energy had earlier declined the possibility of selling its German subsidiary, REpower. However, it is now looking at the option of a share sale of REpower, according to sources associated with the development. Though the amount of money to be raised and the timing of the listing is not known, sources say the turbine manufacturer could be listed on the London Stock Exchange. The decision to look at raising equity from its crown jewel, as REpower is referred to by Suzlon, could have been influenced by the fact that the company is under corporate debt restructuring (CDR).
Last year, Rs 9,500 crore of Suzlon's debt was restructured with stringent conditions by bankers which included promoter equity contribution as well as sale of some of its office spaces and subsidiaries. "Listing or selling was very much a condition in the CDR package. Banks are aware the company will always find it difficult to service the repayments through normal cash flows. It has to look at some other means to raise funds for repayment. Sale of equity through many routes like listing or outright sale is one such option," said a senior official of a public sector bank.
