The world’s third-largest wind turbine manufacturer Suzlon Energy has sold 35 per cent stakes in one of its subsidiaries Hansen Transmissions, a leading maker of wind gear boxes.

The move is aimed to arrange funds for reducing its debt burden. The Tulsi Tanti controlled firm is said to have recovered $370 million from the stock sale.

Mr. Sumant Sinha, the Chief Operating Officer at Suzlon, added, “We’ll continue with our existing relationship with Hansen which is a strategic supplier for us. All other things including the supply pact and our representation on the Hansen board will remain unchanged.”

The firm had recently restructured its bond issue to mitigate increasing losses. The firm has total debt of Rs 12,500 crore and the recent stake sale would reduce its shareholding in Hansen Transmissions to 26% from 61%.

The firm had acquired the much hyped Belgium-based company in 2006 for $565 million in line with its business expansion exercise.

Tulsi Tanti, the Chairman of Suzlon energy added, “Our acquisition of Hansen was guided by long-range strategic interests that we see being delivered today.”

Shares of firm surged 2.5% to Rs 75.20 on the Bombay Stock Exchange.