Feb. 28 (Bloomberg) — Suzlon Energy Ltd. fell the most in
more than four years after founders of India’s largest wind
turbine maker sold 109.9 million shares.
The stock plunged 34 percent, the biggest drop since Oct.
24, 2008, to 16 rupees at the close in Mumbai. Suzlon’s founders
sold the shares, which account for 6.19 percent of the company,
to raise 2.4 billion rupees ($44 million) to repay lenders as
part of a debt-recast plan, according to an e-mailed statement
from the Pune-based turbine maker today.
Suzlon completed refinancing $1.8 billion in domestic debt
last month after failing to pay $209 million of foreign-currency
convertible notes on Oct. 11. That was India’s biggest
convertible-bond default and fanned concerns that creditors may
demand immediate payment of other loans.
“Founders selling their stake in the company to raise
funds for repaying debt shows their desperation,” said Sudip Bandyopadhyay, chief executive officer at Mumbai-based
Destimoney Securities Pvt.
Suzlon spokesman Anoop Kayarat declined to comment on the
share-price decline.
To contact the reporters on this story:
Ameya Karve in Mumbai at
akarve@bloomberg.net;
Archana Chaudhary in New Delhi at
achaudhary2@bloomberg.net;
To contact the editor responsible for this story:
Sam Nagarajan at samnagarajan@bloomberg.net
