Suzlon Energy share news and analysis

Suzlon Energy share news and analysis

Ideo:

source: Wikipedia

Suzlon Energy Ltd. is a wind turbine supplier based in Pune, India. It was formerly ranked by MAKE as the world’s fifth largest wind turbine supplier. It has since dropped out of the Global top ten rankings (as of 2014) due to extensive losses and inability to repay debts. The company’s website claims to have over 17,000 MW of wind energy capacity installed globally, with operations across 18 countries and a workforce of over 8,000. Despite financial issues, it continues to be a major manufacturer of wind turbines; in 2016, the company posted a profit EBITDA after accruing losses over seven consecutive years.


Suzlon Latest Trading Price

Suzlon Energy Ltd

NSE: SUZLON

3.15 INR +0.15 (5.00%)


Suzlon Loan Re-structuring

Suzlon Energy got approval from lender on restructuring of it’s loan which is led by SBI, loan worth Rs 14,000 crore. Also, shareholder have given approval but this will dilute the holdings.

Suzlon had resutructure loan in past for Rs 9,500 crore.

Again in 2015, due to liquidity issue 23% stake was sold to Dilip Shanghvi in exchange of capital.

Suzlon creditors have decided to keep up company become in NCLT, bankruptcy won’t be beneficial for creditor to repay the huge amount.

But Bankers have split debt in sustainable and non sustainable debt.

Bankers will pay for unsustainable debt and written off the amount and sustainable debt is give in form of some equity to banks.

Equity to bankers are given by issuing new shares that how old investors are diluted.

Lenders are given

  • Long term 4,10,000 optionally convertible debentures payable in 20 years at 0.01% – Total value Rs4,100 crore
  • 100 crore equity share
  • Rs 400 crores compulsory convertible debentures. (only convert in equity)
  • 50 crore warrants of Re 1 each.
  • Also Rs 1,000 crore equity linked instrument.


Suzlon Financials

source: Moneycontrol

AnnualMAR 2019MAR 2018MAR 2017MAR 2016MAR 2015
Sales5,024.698,116.2012,714.379,483.4819,954.44
Net Profit-1,531.09-389.18899.89607.58-9,133.36


Suzlon down side

  • Govt is now less focused on wind energy.
  • Market share in reducing & not market leader.
  • Too much competition, thus lost a lot of sale.


Suzlon upside

  • with increasing in equity, company had reduce it’s debt of Rs 14,000 crore.
  • Not due to no debt trading price is very attractive.


Final Conclusion

Suzlon is still not a great buy, but it might a good time to enter into company with little amount.


Disclaimer: This is for educational purpose only. Make your investment decision with help of your financial adviser and not based on the about information.


Suzlon Energy share news and analysis

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