The founders of Suzlon raised about $110 million by selling 60 million existing shares (4%), reducing their holdings to 60%. The funds raised will be used to finance the buyout of the stake held in REpower Systems A.G. from Martifer SGPS. The sellers placed the shares at 87 rupees each. This is the second time this month that the company's founders have sold a part of their stake. They sold around 30 million shares, or nearly 2% of the company, on May 13 to pay Suzlon for supplying wind turbines to some entities owned by the founders.
Shares of Suzlon Energy fell nearly 19 percent on the National Stock Exchange of India on media reports of problems in supplying blades to REpower in China. Suzlon denied allegations that REpower rejected prototypes manufactured by Suzlon and accepted prototypes from another manufacturer for a project in Shandong province, China. In a statement, Suzlon reported it had not delivered any blades to REpower, saying the blades were still in the prototype phase of manufacturing and still being tested to comply with REpower's quality control standards.
Suzlon signed a repeat order with Duke Energy, based in Charlotte, North Carolina, to provide 20 units of the S88-2.1 megawatt wind turbine. The total supply portfolio to Duke Energy is now 130MW. Suzlon will deliver these 20 wind turbines by July 2009 and plans to begin operating the turbines by the end of 2009.
