Suzlon Energy LtdBSE 2.65 %, the world's leading power wind power solutions provider, soared over 30 % in the first month of 2013, as boosted by positive triggers such as an approval of corporate debt restructuring (CDR) and the inflow of new orders. While, the stock is trading as much as 95 % below the all-time high of Rs 454.71 listed in early 2008, compared with the Friday's closing(1 February) of Rs 25.15 on the Bombay Stock Exchange. Even though SuzlonBSE 2.65 % has temporarily avoided the near danger, but it was not completely out of the woods and the stock will hold onto gains if the company manages to expand the order book.
In January, the wind energy major said that its lenders, rising 19 banks led by the SBIBSE -1.10 %, that approved its proposal to rejig a Rs 9,500-crore of the domestic debt, giving a big relief to the financially troubled company.
Suzlon said in a statement that the empowered group of corporate debt restructuring (CDR) cell rising 19 lenders formally approved our CDR proposal to recast Rs 9,500 crore of the domestic debt. While, the package is effective from October 1, 2012 and it does not include our foreign currency debt.
During the course of two-year moratorium, the interest worth Rs 1,500 crore will be converted into the equity. The Pune-headquartered company further said that the package also includes the promoters bringing in Rs 250 crore of the fresh equity, of Rs 62 crore was infused the last December.