Suzlon, the country’s largest wind turbine maker, has suspended its Rs 1,800 crore rights issue announced a month ago citing choppy markets conditions. Earlier this month, the free-falling markets had hammered the rights issues of Hindalco and Tata Motors, which had to be bailed by promoters and underwriters. Suzlon had planed to raise the money to fund the 270 million-euro ($334 million) purchase of a 22% stake held by Martifer SGPS SA in REpower.
Suzlon already owns 66% of REpower and 89% of the voting rights in the German company, including those of Martifer. Suzlon has also suspended its domination agreement with REpower in view of the current market conditions.
Suzlon’s founder Tulsi Tanti was seeking control and a power-transfer agreement, which would let the majority shareholder assume management of REpower. The purchase of Martifer’s stake is scheduled to take place before December 15. Suzlon bid successfully for Hamburg-based REpower in May last year in partnership with Martifer, topping a rival offer from Areva SA. The company bought Areva’s 30% stake in REpower in June.