The leading renewable energy product provider is talking with two investors and the deal should be done before March 2019
Suzlon Global Services, the operations and maintenance subsidiary of Suzlon Energy will be the donor to sell 49% of its stakes to raise funds to pare debt. Suzlon Energy is looking forward raise around Rs. 8000 crore for the service business. It aims to reduce its debt by 30 to 40 percent by the end of 2018-2019 Indian financial year.
The leading wind energy solutions provider had a net term debt of Rs. 6,800 crore and Rs. 3,400 crore of working capital loans as on end-September. The continuous fall in the rupee has put additional pressure on companies like Suzlon, who have foreign currency debt maturing soon. Additionally, its share prices have fallen below the FCCB conversion price, leaving it no option but redemption of the bonds. In the last six months alone, shares of Suzlon Energy have drastically fallen 40% to Rs. 5 as against a marginal rise.
Suzlon Energy’s current strength
Having more than 1800 customers globally, Suzlon’spower plants in India are operating at 17900+ MW installed capacity out of which 11600+WTGs are installed. Suzlon Group is one of the leading renewable energy solutions provider in the world with an international presence across 18 countries in Asia, Australia, Europe, Africa and the Americas.
Headquartered at Suzlon One Earth in Pune, India, the Group is comprised of Suzlon Energy Limited (NSE & BSE: SUZLON) and its subsidiaries. A vertically integrated organization, with over two decades of operational track record, the Group has a cumulative installation of over 18 GW of wind energy capacity, over 7,500 employees with diverse nationalities and world-class manufacturing facilities. Suzlon is the only Indian wind energy company with a large in-house Research and Development (R&D) set-up in Germany, the Netherlands, Denmark and India.
