SUZLON on Restructuring : Merges Subsidiaries

Wind energy major Suzlon Energy on 6th Dec 2010, said that its Board of Directors has approved the acquisition of the 'Tower Business Division' of Suzlon Towers and Structures Ltd and 'Operations and Maintenance Division' of Suzlon Infrastructure Services Ltd. Both are wholly owned subsidiaries of Suzlon and the merger would be done subject to receipt of all statutory and regulatory approvals.

Shares of Suzlon Energy closed at Rs 52.25, up 1.06 per cent on the BSE.

Some of the details of this Subsidiaries - As on 31st March 2010.

SUZLON TOWER & STRUCTURE LTD.

Issued,Subscribed,Paid up Capital - Rs. 45 crs.

Reserves & Surplus - Rs. 195.61 crs.

Total Assets - Rs. 506.70 crs.

Turnover - Rs. 533.11 crs.

Profit before Tax - Rs. 31.91 crs.

Provision for Tax & Deferred tax - Rs. 10.78 crs.

Profit After Tax - Rs. 21.13 crs.

SUZLON INFRASTRUCTURE SERVICES LTD.

Issued,Subscribed,Paid up Capital - Rs. 142 crs.

Reserves & Surplus - Rs. 121.58 crs.

Total Assets - Rs. 967.36 crs.

Turnover - Rs. 1105.28 crs.

Profit before Tax - Rs. 86.95 crs.

Provision for Tax & Deffered tax - Rs. 29.89 crs.

Profit After Tax - Rs. 57.06 crs.

So with the merger the networth of Suzlon will be increased by around Rs. 317 crs, which translates into an increase in its book value by about Rs.1.82 per share. Suzlon's debt of Rs. 9252 crs. Reserves & Surplus - Rs.5892 cr.(as on 30 Sept 2010)