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It initiated the process for shareholder approval through postal ballot.
Suzlon will also allot shares worth Rs 231.7 crore to its lenders who did not participate in the CDR. As many as 42 crore shares would be issued to both these categories of lenders in April 2013.
The rest would be issued in one or more tranches till September 2014. The total share base of the company will increase to 219 crore, from 177 cr to by April 2013.
The shares which will either be equity shares or compulsorily convertible debentures will allotted at a price of Rs 18.51 per share, on a preferential basis.
“We believe that by our lenders taking an equity position, in addition to providing critical financial support, is an important signal of their confidence in our fundamental viability as a business, and our long term outlook,” said Kirti Vagadia, chief financial officer of Suzlon Group.
The CDR restructured Suzlon's loans of around Rs 9,500 crore with interest rates lower by three%, and a two-year moratorium on principal and term-debt interest payments. As a part of CDR conditions, two year’s interest worth Rs 1,500 crore must be converted into equity or equity-linked instrument over the next two years.
“While this is an important step for the company to complete the various aspects of the CDR scheme, it is also a key step towards improving the financial health of the company. We anticipate that with these steps we will, by mid-April 2013, improve our leverage position in terms of our debt-to-equity ratio,” said Vagadia.
The promoters of the company who had brought in promoter contribution, as well as unsecured loabns, will also be issued shares worth Rs 377 crore. Samimeru Windfarms would also be allotted shares worth Rs 22 crore for the conversion of an unsecured loan.
The board of directors also approved the acquisition of stake of Kalthia Group in Suzlon Structures Limited, a subsidiary of the company, by share swap. This is also a part of CDR conditions.
