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Suzlon shares continue to fall; down 7% on revenue worries

Extending yesterday's sharp losses, shares of Suzlon Energy slumped nearly 7 percent Friday after the company announced the sale of its German subsidiary for 1 billion euros (USD 1.2 billion) to pare its mounting debt.

Mumbai: Extending yesterday's sharp losses, shares of Suzlon Energy slumped nearly 7 percent Friday after the company announced the sale of its German subsidiary for 1 billion euros (USD 1.2 billion) to pare its mounting debt.

Suzlon Energy's scrip plunged 6.60 percent to settle at Rs 14.86 on the BSE. During the day, it tumbled 11 percent to Rs 14.15.

On the NSE, it slumped 6.88 percent to close the day at Rs 14.90.

In the previous session also the stock had lost 7.5 percent. In two days, the company's market value has crashed by Rs 760.96 crore to Rs 4,855.04 crore.

Experts said that the stock fell on revenue generation concerns post sale of its German unit.

Suzlon Energy, one of the world's largest wind-turbine makers, had said US-based private-equity fund Centerbridge Partners LP had bought Senvion in a 1 billion euro deal under which it stands to earn another 50 million euro depending on certain conditions.

At the end of the second quarter of the current fiscal, Pune-based Suzlon had Rs 8,900 crore of local-currency debt and dollar borrowings of USD 1.27 billion, including working capital loan.