Suzlon skyrockets 17% on lenders nod for Rs 95 bn CDR plan
26th January 2013 08:18 AM
Suzlon Energy, the world's fifth largest wind turbine supplier, jumped 16.90% on Friday after the company"s empowered group of corporate debt restructuring (CDR) cell approved its proposal for domestic debt restructuring.
The company"s domestic lenders, a consortium of 19 banks, approved the company"s CDR package of Rs 95 billion (USD 1.8 billion).
The company said, "The package includes a two year moratorium on principal and term-debt interest payments; a 3% reduction in interest rates; six month moratorium on working capital interest; as part of the package Rs 15 billion will be converted into equity or equity-linked instrument over the next two years to bring stronger financial stability and a 10 year door-to-door back-ended repayment plan."
The group"s promoters will also bring in equity to the extent of Rs 2.5 billion into the company in stipulated time, of which Rs 620 million has already been infused.
Kirti Vagadia, chief financial officer of Suzlon Group, said that by this CDR package, the company will return to a position of stability and confidence to its customers, vendors and employees.Shares ofthe companysettled at Rs 21.10, up Rs 3.05, or 16.90% at the Bombay Stock Exchange (BSE) on Friday. In the earlier session, the shares declined 2.96%, or Rs 0.55, at Rs 18.05Total volume of shares traded on the bourses today was higher by 176.54% to 126,474,945 compared with 22-day average volume of 45,735,277.The scrip has touched an intra-day high of Rs 21.30 and low of Rs 18.45.Share Price Movement Period Pricein Rs Gain/(Loss) in Rs in % 1 Week 19.00 (0.95) (5.00) 1 Month 17.60 0.45 2.56 3 Months 15.45 2.60 16.83 6 Months 17.15 0.90 5.25 1 Year 27.25 (9.20) (33.76) Note: Based on previous day closing price.
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