Wind power major Suzlon Energy [Get Quote] said on Monday it has received board approval for raising up to Rs 1,800 crore (Rs 18 billion) through allotment of shares to the existing shareholders on rights basis

In a filing to the Bombay Stock Exchange, Suzlon Energy said the board has also approved increasing the private investment limit in one of its subsidiary to 17.1 per cent for a consideration of Rs 400 crore (Rs 4 billion).

The board has approved the shareholders' agreement to facilitate IDFC [Get Quote] Private Equity to invest in SE Forge Ltd, a wholly-owned subsidiary of the company, to an extent of Rs 400 crore, the filing added. Post approval Suzlon's shareholding in SE Forge stood reduced to 82.9 per cent.

However, the company did not disclose where it would deploy the funds raised.

Earlier this month, Suzlon had entered into an agreement with Portugal-based Martifer for acquisition of the latter's 22.48 stake in REpower Systems for Euro 270 million. The acquisition consolidated Suzlon's total holding in REpower to about 90 per cent.