The Cabinet Committee on Economic Affairs (CCEA) today approved wind major Suzlon Energy’s Rs 1,800-crore rights issue, two months after the company suspended its plan to raise money through this route.
Suzlon, India’s biggest wind-turbine maker, had sought government approval for the rights offer to finance its plan to buy an additional stake in Hamburg-based REpower Systems AG. The Ahmedabad-based company suspended the offer on October 27 after world stock markets slumped.
Company officials said the CCEA approval did not mean it would reopen the rights issue. “The issue remains suspended,” one official said.
Suzlon is scheduled to pay Martifer SGPS SA $89 million this month under a new payment schedule to buy 22.4 per cent stake in REpower Systems. The Indian company had previously agreed to pay in full by December 15, Martifer said in September.
