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World's fifth largest wind turbine maker Suzlon plans to list its German subsidiary Senvion on the London Stock Exchange through an initial public offer which is likely to garner close to Rs 7,000 crore.
"We are working on that (listing of Senvion) front and it will happen by the end of current financial year (2014-15)," Suzlon Group Chairman Tulsi Tanti told PTI when asked about the timing of Senvion's listing on the London Stock Exchange.
However, the company did not disclose the amount it expects to raise from the public offer of Senvion but according to sources it is hopeful of garnering about Rs 7,000 crore.
Industry experts feel that the listing of German subsidiary by Suzlon will be a win win situation for the company.
"Senvion is a leading player in the global wind market and it would certainly have lots of interest from investors when it goes for listing in London," Debasish Mishra, Senior Director (Consulting) Deloitte said.
He added that if the structure allows Suzlon to bring the cash and reduce its debt in India, it would be a huge positive for the debt-ridden company.
Suzlon Energy renamed its subsidiary REpower as Senvion, last year. REpower, which was founded in 2001, was acquired by Suzlon Energy in December 2009.
Meanwhile, Suzlon which is planning a business revival strategy has set a target of raising Rs 1,000 crore through the sale of its non-core assets during the current fiscal.
The company reported a lower net loss of Rs 750.74 crore in the three months ended June 2014, mainly on the back of higher income. It had incurred a net loss of Rs 1,058.90 crore in the same period a year ago.
Shares of Suzlon closed at Rs 12.98, up 1.25 per cent, on the BSE on Friday.
