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Tulsi Tanti-led Suzlon's promoters are looking to raise funds outside of its flagship wind turbine making company. A Tanti holding company Synefra, an infrastructure company, is looking to monetise land at its Karnataka special economic zone (SEZ).
A top banker said that Synefra is going ahead with property development at the site. The proceeds of the business, will be used by the promoters to fund their obligations towards Suzlon's corporate debt restructuring (CDR), said the banker, under condition of anonymity. The financial details of the amount to be raised through this process are unknown.
In January this year, Suzlon's banks restructured Rs 9,500 crore of its debt. Apart from many other conditions, the CDR package had mandates for the promoters to infuse money into the company. The CDR gave the company a two year interest holiday on principal debt, in addition to working capital facilities, and term debt interest payments. Banks have already converted interest payments into equity, and Suzlon had issued shares to them.
In response to a questionnaire, Suzlon said the promoter group brought in the requirement for 2012-13, which is Rs 125 crore, by 31st March. “We remain on track to fulfil the requirement for 2013-14,” the company said, without commenting on Synefra's plans.
Suzlon also claims that its order intake from wind power generators has been robust. “At the time of our full year earnings announcements, the consolidated group orderbook (with German subsidiary REpower) stood at 5.9 gigawatt, approximately Rs 42,094 crore in value, with an intake of 836 megawatts in fourth quarter 2012-13 alone, and around 3.5 GW over the full fiscal year. This gives us a strong order book spread up to 2015-16,” the company said.
A company official however said that the ongoing monetisation process at the 641-acre SEZ is a part of business as usual. “The SEZ has been operational for a long time and it is a regular development,” he said.
The SEZ, called Padubidri, is in proximity the Mangalore port in coastal Karnataka. The SEZ also borders the national highway which cuts through three more states of Maharashtra, Goa Karnataka and Kerala. The SEZ has dedicated 210 acres for non-process areas, green cover and roads. The company says that it has already leased 120 acres to hi-tech engineering companies.
Synefra, managed by J R Tanrti, was formerly called Suzlon Infrastructure Ltd, Synefra. It has interests across engineering, prourement and construction (EPC) and facility management too. The company is developing two more SEZs at Coimbatore and Vadodara as well.
