Suzlon Energy shares surged nearly 8 per cent intraday on Friday after the group bagged orders for a total capacity of 75.60 MW from various Public Sector Undertaking (P5U) and Small and Medium Enterprises (SMEs) during April to July 2016 amid its chairman and Tulsi Tanti saying that the company expects to exit corporate debt restructuring programme by March 2017. The wind turbine maker has won retail orders from mixed bag of customers across diverse industry segments including food, textiles, chemical, real estate, entertainment and manufacturing. These orders comprise of Suzlon’s latest product offerings and includes 5111 90m tubular tower, 597 120m hybrid tower and S97 90m tubular tower with a rated capacity of 2.1 MW each.
At 9.54 am, the scrip was trading 5.83 per cent up at Rs 17.25. The scrip opened at Rs 16.70 and has touched a high and low of Rs 17.60 and Rs 16.60, respectively, in trade so far. Later, the scrip closed 5.21 per cent up at Rs 17.15.
The move of exiting debt restructuring is seen as a turaround step for the company, which reeled under heavy debt. According to Reuters, the company’s decision to buy German wind energy firm RePower(now renamed Senvion) for 1.4 billion euros ($1.56 billion) in 2007 proved a costly mistake after the global financial crisis of 2008 dented demand for wind turbines, which led it to post India’s biggest default in foreign currency convertible debt in 2012.
“Suzlon will provide the entire gamut of turnkey solutions right from equipment supply till commissioning and also offer dedicated life cycle asset management services for a contractually defined period to these customers. Out of the total, orders of 75.6 MW, orders of 42 MW were received in Q1 of FY2017, while 33.60 MW orders received in July 2016. The projects are spread across the key windy states of Tamil Nadu, Gujarat and Andhra Pradesh and are scheduled to be completed by March 2017,” the company said in a BSE release.
Suzlon Group is one of the leading renewable energy solutions providers in the world with an international presence across 19 countries in Asia, Australia, Europe, Africa and North and South America.