Outcome of the Board Meeting dated 9th May 2025
Awaiting price reaction for this filing.
Suzlon Energy informed exchanges about its 9th May 2025 board meeting outcome. The NCLT Ahmedabad Bench has approved the scheme to merge its wholly owned subsidiary Suzlon Global Services Limited (SGSL) into Suzlon Energy, with an appointed date of 15th August 2024. Separately, the board approved the slump sale of its Southern and Western region Project Divisions to two step-down wholly owned subsidiaries — Suzlon Southern Projects Limited and Suzlon Western India Projects Limited — at fair market value on a going concern basis. In FY24, these two divisions together contributed about Rs. 501 Crores (~7.7%) to Suzlon's consolidated revenue of Rs. 6,496.84 Crores and Rs. 72 Crores to net worth. The deals are flagged as related-party transactions not done at arm's length, and are expected to close by end of May 2025. There will be no change in Suzlon's shareholding pattern as a result.
This is largely an internal group restructuring — the divisions are being moved within wholly owned subsidiaries rather than sold to outside parties, so no external cash flows in or out and consolidated financials remain unchanged. Shareholders should note the NCLT approval brings the SGSL merger one step closer to completion, while the slump sales add some operational complexity given the related-party, non-arm's-length nature flagged in the disclosure.