Dilip Sanghvi, the founder of Sun Pharmaceutical Industries, has agreed to buy a 23 per cent stake in Indian wind turbine maker Suzlon Energy for about $290 million, the company said late on Friday.
Sanghvi, India's second-richest man, will pay Rs 1,800 crore through Dilip Sanghvi Family and Associates (DSA) for 100 crore new shares in Suzlon, issued by way of a preferential allotment.
Sanghvi's investment firm and Suzlon will also form a wind farm joint venture for the development of 450 megawatt (MW) of wind farms, the statement said.
Loss-making Suzlon has been under pressure over the last few years due to a slowdown in global turbine sales and a growing debt pile. It was forced to restructure $1.8 billion of debt after defaulting on a $200 million convertible bond redemption in 2012.
The deal will provide Suzlon with much needed liquidity and the company said it would also use the cash to tap opportunities in India and growth markets like the United States, China, Brazil, South Africa, Turkey and Mexico.
Suzlon shares have risen 15 per cent in the past week on media reports of Sanghvi's interest in investing in the company in a personal capacity. The company last week denied having received a proposal from Sanghvi.
Suzlon sold its German unit Senvion SE to buyout firm Centerbridge Partners last month for 1 billion euros in an all-cash deal, part of the company's plans to halve rupee debt by March 31.
Footnote: An earlier version of the story mentioned that Sun Pharma will invest Rs 29,000 crore, it's actually $290 million. It has been corrected now.