New Delhi: Sun Pharmaceutical founder Dilip Sanghvi Friday has decided to invest $290 m in turbine maker Suzlon and buy a 23 percent stake in Indian wind turbine maker Suzlon Energy.
He is the India’s second-richest man and will pay Rs 1800 crore through Dilip Sanghvi Family and Associates for 1 billion new shares in Suzlon, issued by way of a preferential allotment.
According to the statement, Sanghvi’s investment firm and Suzlon will also form a wind farm joint venture for the development of 450 megawatt (MW) of wind farms.
Loss-making Suzlon has been under pressure over the last few years due to a slowdown in global turbine sales and a growing debt pile.
It was forced to restructure USD 1.8 billion of debt after defaulting of USD 200 million convertible bond redemption in 2012.
The deal will provide Suzlon with much needed liquidity and the company said it would also use the cash to tap opportunities in India and growth markets like the United States, China, Brazil, South Africa, Turkey and Mexico.
Suzlon shares have risen 15 percent in the past week on media reports of Sanghvi’s interest in investing in the company in a personal capacity.
The company last week denied having received a proposal from Sanghvi.
Suzlon sold its German unit Senvion SE to buyout firm Centerbridge Partners last month for 1 billion euros in an all-cash deal, part of the company’s plans to halve rupee debt by March 31.
Sun Pharma stock price On February 13, 2015, Sun Pharmaceutical Industries closed at Rs 939.35, up Rs 16.30, or 1.77 percent.
The 52-week high of the share was Rs 965.90 and the 52-week low was Rs 552.50. The latest book value of the company is Rs 35.77 per share. At current value, the price-to-book value of the company was 26.26.