The promoters and associates of Suzlon Energy Ltd. will infuse upto Rs. 400 crore as equity into the troubled renewable energy sector company through various securities as part of a debt restructuring plan.
Tanti Holdings Private Limited (promoter), Shanghvi Finance Pvt. Ltd. and associates will infuse capital in company.
The board of directors, in a late night meeting recently, approved the proposal for restructuring the company's debt and certain identified subsidiaries, Suzlon Energy said its filing with BSE.
Under the approved debt recast plan, the Tulsi Tanti-controlled entity will issue securities – shares, convertible bonds and warrants – to 17 lenders for converting of part of debt into equity. Some of the lenders include State Bank of India, Axis Bank, Bank of Baroda, ICICI Bank, IDBI Bank and Yes Bank.
Suzlon stock was ruling at Rs. 2.6 per share, down 7.42 per cent in morning trades on BSE.
The Pune-based entity will also divest and dispose some of investment, assets and also dilute stake in some of the undertakings in line with the approved plan. However, the company did not specify assets it would sell to reduce a stake in companies.
The board also approved a proposal to appoint Sameer Shah as an “Independent Director” of the Company for a five-year term commencing February 27. His appointment is subject to regularisation by the shareholders at the next Annual General Meeting of the Company.
On issuing securities to lenders, company said it will give 100 crore shares of Rs 2 each and also issue 0.041 crore Secured Optionally Convertible Debentures of Rs. 1 lakh each and 50 crore warrants of Rs 1 each.
Lenders and the company have hammered out a restructuring plan under the Reserve Bank of India (Prudential Framework for Resolution of Stressed Assets) Directions, 2019.
The directors also gave a nod for amending the Articles of Association and increase in the Authorised Share Capital and alteration of the Capital Clause of the Memorandum, it added.
They have also cleared an enabling resolution to issue equity shares/ equity-linked instruments to an extent of Rs. 1,000 crore. This step is to help the company issue securities at an appropriate time should that be required.
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