Suzlon eyes USD 1.1bn from Senvion IPO - report

Oct 13 - Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) will complete the initial public offering (IPO) of its German arm Senvion SE by March 2015, expecting nearly INR 70 billion (USD 1.1bn/EUR 904m) from the move.

The Press Trust of India (PTI) said so yesterday, citing unnamed sources. Tulsi Tanti, the founder and chairman of Suzlon Energy, confirmed to the news agency that the floatation will be carried out by the end of India's current fiscal year but did not disclose the exact amount the firm aims to raise.

As part of the IPO on the London stock exchange, Suzlon’s Hamburg-based unit plans to list at least a 25% stake in London and will also sell bonds to raise roughly USD 600 million more in a separate transaction, Tanti told the Financial Times last month. A portion of the proceeds will go for the expansion of Senvion’s business, while the rest will be used to repay debt at the parent level.

Suzlon aims to raise INR 10 billion from selling non-core assets during fiscal 2014/15 to revive its business. The Indian company has been loss-making since 2010.

(INR 100 = USD 1.634/EUR 1.287)

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