Millennium Post

Suzlon scrip continue to lose wind, dips by another 7%

Extending Thursday’s sharp losses, shares of Suzlon Energy slumped nearly 7 per cent on Friday after the company announced the sale of its German subsidiary for 1 billion euros (USD 1.2 billion) to pare its mounting debt. Suzlon Energy’s scrip plunged 6.60 per cent to settle at Rs 14.86 on the BSE. During the day, it tumbled 11 per cent to Rs 14.15. On the NSE, it slumped 6.88 per cent to close the day at Rs 14.90.

In the previous session also the stock had lost 7.5 per cent. In two days, the company’s market value has crashed by Rs 760.96 crore to Rs 4,855.04 crore. Experts said that the stock fell on revenue generation concerns post sale of its German unit.

Suzlon Energy, one of the world’s largest wind-turbine makers, had said US-based private-equity fund Centerbridge Partners LP had bought Senvion in a 1 billion euro deal under which it stands to earn another 50 million euro depending on certain conditions.

At the end of the second quarter of the current fiscal, Pune-based Suzlon had Rs 8,900 crore of local-currency debt and dollar borrowings of USD 1.27 billion, including working capital loan.
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