Suzlon promoters sell 2.25% stake in open market

Suzlon promoters sold about 2.25% of the paid-up capital in the open market equivalent to 40 million equity shares in the company.The company plans to use the funds for strategic initiatives.

In a filing to the stock exchanges, the company said the promoters -- Vinod Ranchhodhbhai of HUF and Sanman Holdings Private Ltd --sold a total of 40 million (20 million each) equity shares on March 14, 2011.

Following the sale, the promoters' holding in the company has reduced to 54.84% of the paid-up capital from 57.09% as on December 31, 2010.

The shareholders have indicated that the primary intention of the utilisation of these proceeds is to extend financial support to the company, the company said.

The stock reacted sharply and fell almost 6% to Rs 44.75 during the day trade and finally ended 3% lower at Rs 46.30 on the National Stock Exchange. About 71.41 million shares changed hands on the both the exchanges.

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