The funds will be infused into the company at the earliest to comply with equity infusion requirements under the CDR process, Suzlon said in a statement. The company plans to use the money to reduce debt and for its business operations.
The promoter group sold 3.75 crore shares, reducing its stake to 50.65%.
Concerns over turbine quality and a global slowdown in sales have hit Suzlon hard in recent times, resulting in mounting losses and debt. For the 2011-12 fiscal, the company reported a net loss of R479 crore on revenue of R21,082 crore.
The worlds fifth-largest wind turbine maker, which in October defaulted on the redemption of its $221 million foreign currency convertible bonds (FCCBs), had a fully secured gross debt of R14,568 crore on its book as of the July-September quarter, taking its debt to four times the equity.
At the end of the quarter, Suzlons net debt stood at R13,604 crore, of which foreign currency convertible bonds (FCCBs) represented around R3,500 crore, and had a cash balance of R964 crore.
Suzlons debts of around R11,000 crore have already been admitted into the CDR cell. The bankers are now meeting to finalise the CDR package. The main lenders to Suzlon are SBI with an exposure of around R3,500 crore, IDBI Bank with around R1,700 crore exposure, Bank of Baroda at R1,000 crore and Indian Overseas Bank at R1,000 crore.
According to Suzlons flash report that contains the initial proposals for the CDR package, the companys promoter Tulsi Tanti is expected to bring in R250 crore. Apart from a two-year loan moratorium, the package will also include term loans and working capital loans. The flash report also proposes rolling over $475 million in FCCBs. Suzlon also plans to sell off some of its assets, including Suzlon Tianjin, SE Forge and SE Electricals, to raise money.
The company has been selling its assets to pare its debt, including Belgian gearbox maker Hansen Transmissions International in 2011 and its China-based manufacturing facility in 2012 for $60 million.