Suzlon Group has announced the signing of definitive agreements with Dilip Shanghvi Family and Associates (DSA) for equity investments of Rs. 1,800 crs in Suzlon Energy Limited.
Post allotment, DSA shareholding will be 23% shares, while the Tanti Family will hold 24% shares. Management control remains with Tanti Family by virtue of pooling arrangement for voting. DSA & Suzlon will form an equal joint venture for the wind farm development business. The joint venture will develop 450MW within a stipulated period of time. DSA will also provide credit enhancement to the lenders of Suzlon for additional project specific working capital facilities. This move will help Suzlon in getting much needed working capital financing support and will be a catalyst for volume ramp up. The above transaction are subject to closing conditions, including corporate and other regulatory approvals.
