Suzlon Completes Sale of Two Subsidiaries to ReNew Power

Suzlon Energy has announced that it has completed the sale of two of its subsidiaries to Ostro Power, a wholly owned subsidiary of ReNew Power for Rs 29.8 crore.

The two subsidiaries are the Shreyas Solarfarms limited and Aalok Solar farms Limited, which own a combined 30 MW capacity of solar power projects in Rajasthan.

“This is to inform that in terms of share subscription and shareholders’ agreement executed by the company and Ostro Energy Private Limited (“Ostro”), a wholly owned subsidiary of ReNew Power Services Private Limited. (a) Shreyas Solarfarms Limited and (b) Aalok Solafarms Limited, the subsidiaries of the company, have ceased to be the subsidiaries of the company as the company has initiated the sale of securities of both to Ostro,” the Suzlon issued in a statement.

Shreyas Solar owns and operates a solar capacity of around 20 MW in Jodhpur, and according to the firm, it has a turnover of around Rs 7.56 crore and net worth of Rs 9.56 crore for the financial year end on March 31, 2018. Suzlon has received aggregate consideration of Rs l0.13 crore on sale of 26% of its existing stake in Shreyas and the balance stake would be transferred on receiving the balance consideration of Rs.9.74 Crores, which is proposed to be completed in due course.

Aalok Solar owns and operates 10 MW of solar projects and its financial turnover for the FY 2018-19 was Rs 3.91 crore and a net worth of Rs 4.98 crore. Suzlon received aggregate consideration of Rs 5.06 crore on sale of 26% of its existing stake in Aalok and the balance stake would be transferred on receiving the balance consideration of Rs 4.87 crore.

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In March, the company announced the sale of two of its other subsidiaries (i) SE Solar and (ii) Gale Solar farms to CLP Wind Farms for a total consideration of Rs 99.09 crore. 

In February we reported, that Suzlon Energy had reported that its consolidated net loss had widened to Rs 40.07 crore in the December 2018 quarter year-on-year, mainly due to lower revenues, higher forex loss, and finance costs. Its consolidated net loss was Rs 32.68 crore in the quarter ended December 2017.