Suzlon to issue 78.37 cr shares to CDR lenders; stock gains

Shares of country's largest wind turbine supplier Suzlon Energy rose more than 3 percent in early trade on Monday as the company said would issue 78.37 crore equity shares at Rs 18.51 a share, on a preferential basis to its CDR (corporate debt restructuring) lenders.

Out of total, 42 crore equity shares will be issued in April and rest shares will be issued in 1 or more tranches till September 2014, Suzlon added.

The company will issue 12.52 crore equity shares to non-CDR lenders at Rs 18.51/share.

In January, the Suzlon group announced formal approval of CDR proposal by empowered group of CDR cell. The company's domestic lenders, a consortium of 19 banks, approved the company's CDR package of around Rs 9,500 crore.

Last month (February), Suzlon raised more than Rs 240 crore by selling 10.995 crore equity shares. "Part of the funds would be infused into the company under CDR mechanism as promoter contribution," the company said in its release.
 
At 10:18 hours IST, shares rose 0.89 percent to Rs 17 on Bombay Stock Exchange.