Millennium Post

Suzlon scrip soars 16% on German arm sale rumours

Suzlon Energy shares on Wednesday  surged over 16 per cent amid reports that the company is looking to sell its German subsidiary Senvion even as the wind turbine maker termed them as "false and speculative".

Shares of the Suzlon, one of the world's largest wind turbine makers, jumped 9.41 per cent to close at Rs 15.46 on the BSE. After opening at Rs 14.10, the scrip touched an intra-day high of Rs 16.44, a gain of over 16 per cent. The rally was fuelled by reports that the company was looking to sell stake in its profit-making Senvion SE.

"This rumours of stake sale are baseless and false and speculative in nature. As a responsible company, we will keep the market updated about all our strategic plans once it is approved by the board," a Suzlon spokesperson said.

Suzlon has been working on ways to cut down its debt and is exploring options including possible listing of Senvion.

During a conference call in November 2014, Suzlon Energy Chairman and Managing Director Tulsi Tanti had said it was "very serious about reduction" of debt and interest cost.

"... we are quite comfortable to execute our plan in H2 (second half of current fiscal) to reduce our debt and also to increase more liquidity in our operations, because the domestic market and other market growth is very high, so we need more funds for our operations and above the project-specific funding and working capital which bank anyway is giving," Tanti had said. Suzlon's consolidated net loss narrowed to Rs 656.21 crore in the three months ended September from Rs 782.37 crore recorded in the year-ago period. 
PTI

PTI

Our contributor helps bringing the latest updates to you


Share it
Top