Suzlon to merge wholly-owned subsidiaries, spin off projects business
06 May 2024
The board of directors of wind power pioneer Suzlon Energy Ltd has approved a scheme of amalgamation under which the company will merge its wholly-owned subsidiaries, Suzlon Global Services and Suzlon Energy Ltd, Mauritius, with itself.
Suzlon Group, India's largest renewable energy solutions provider, which is trying to restructure its energy business, also plans to transfer its projects division to its subsidiary/subsidiaries on a slump sale basis.
Besides, the company will be undertaking a capital restructuring exercise through reclassification and transfer of its general reserves to retained earnings under the scheme of arrangement.
The company said that there will be no change in the existing shareholding pattern of Suzlon post this restructuring exercise.
Suzlon said the restructuring will help the company utilise its resources more efficiently and streamline the organisation by eliminating intercorporate resource transfers and unified business outsourcing.
Besides, it will help the company incorporate best practices, especially in its wind turbine generation and operations and maintenance (OMS) businesses, so as to enhance sustainability, safety, health and environment.
The restructuring will not in any way affect the existing shareholding pattern of Suzlon, Suzlon added.
The business restructuring comes after Suzlon reported positive cash flows for the first nine months of the 2023-24 financial year – the first time since the financial year 2006.
In March this year, Suzlon announced the receipt of an order from Juniper Green Energy Private Ltd for the development of a 72.45 MW wind power project in Dwaraka, Gujarat. Suzlon will be installing 23 wind turbine generators with a rated capacity of 3.15 MW each under the order.
