CDR: Banks to own 19 pc of Suzlon by Apr, 32 pc by Sept 2014
The company will issue shares to the lenders in two tranches. The first tranche of allotment on April 1 will constitute about 19 per cent of equity and later in September 2014 another 13 per cent, taking lenders' overall holding in Suzlon to a tad over 32 per cent, a company spokesperson said.
The share allotment would be part of the world's fifth largest wind turbine maker's recent loan restructuring process under which debt worth Rs 9,500 crore was rescheduled.
The company has fixed the price for share issuance at Rs 18.51 per share, as per the Sebi norms regarding preferential allotment, which is the average price as of December 31, 2012, when the CDR was approved, the company said in an exchange filing.
The company will allot 78.37 crore shares (worth about Rs 1,451 crore) to the CDR lenders on a preferential basis towards their interest sacrifice during the first three years of the CDR. The lenders also have the option to opt for compulsorily convertible debentures.
The non-CDR lenders, on the other hand, will get a preferential allotment of 12.52 crore shares, aggregating to Rs 231.70 crore also at Rs 18.51 per share, which is the price arrived in terms of CDR regulations.
The first part of the preferential allotment involves CDR lenders getting around
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