Suzlon is gearing up to sizzle. Get ready for one of the biggest corporate comebacks in India. There’s a major buzz in the market about the Suzlon Qualified Institutional Placement (QIP). We have information to suggest that soft offers are being snapped up. This means the QIP will be multiple times over-subscribed. As soon as this happens, Suzlon could in one stroke not only wipe out its entire debt, but also have surplus funds for executing its order book.
Shares of the renewable energy giant Suzlon Energy jumped 5% as the firm’s stock is already seeing intense buying action. Institutional sources indicate that the QIP to raise Rs. 2,000 Cr is not only successful, but oversubscribed. This will more than cover the Rs. 1,223 Cr of debt on it’s books and leaves a surplus of more than Rs. 750 crores which will be sufficient cash flow to cover the existing order book. With the company already reporting operational profits, the accelerated revenue realisation will boost both it’s top and bottom line. The move is all set to bring back client, vendor and investor confidence.
On August 9, the Suzlon board decided to undertake qualified institutions placement (QIP) of equity shares to an extent of up to Rs 1,500 crore, with an option to retain oversubscription of up to Rs 500 crore. All eyes were on the wind turbine maker, and the board’s decision reaped the reward.
For the first time since 2008, Suzlon Energy will be relieved of all financial constraints, and the company is looking at wiping out all debt completely. Following its debt reduction, a strong order book, and a return to profitability, Suzlon’s stock has jumped more than 200% in the last year and has doubled investors’ wealth over the previous six months. The company announced that the work started by Mr. Tulsi Tanti, MD of Suzlon Energy, is poised for a successful completion.
The Suzlon Group is one of the world’s leading renewable energy solutions providers, with a presence in 17 countries. Suzlon has a strong presence across the entire wind value chain with a comprehensive range of services, including wind resource assessment, design, supply, site procurement and development, installation, commissioning of the project, and dedicated life cycle asset management services. The Group has a diverse workforce of 5,900 employees with over 28 years of operational track record. Suzlon is India’s No. 1 wind service company, with the most extensive service portfolio of ~13.9 GW of wind energy assets.
