Suzlon surges 10% on corporate debt restructuring buzz
Shares of Suzlon Energy Tuesday rose by 10 percent amid reports that lenders of the wind turbine maker have agreed to restructure its debt.
Mumbai: Shares of Suzlon Energy Tuesday rose by 10 percent amid reports that lenders of the wind turbine maker have agreed to restructure its debt.
Shares of the company soared over 12 percent during the day and finally ended at Rs 17.05, up 10 percent on the BSE.
At NSE, the stock settled at Rs 16.95, up 9.71 percent from its previous close.
On the volume front, 129.26 lakh shares of the company changed hands on the BSE, while more than 5 crore shares were traded on the NSE.
"Buying in the stock stemmed from news of corporate debt restructuring. This may have also triggered short-covering which further pushed the stock up," Milan Bavishi, Head Research, Inventure Growth & Securities said.
The consortium of 20 lenders led by State Bank of India has agreed to recast Rs 11,000 crore of debt of the struggling Suzlon Energy under the corporate debt restructring (CDR) mechanism, a top Suzlon official said.
Suzlon has a debt burden of about Rs 14,000 crore
Debt-laden Suzlon Energy had posted a consolidated net loss of Rs 807.74 crore for the quarter ended September.