Mumbai: Wind turbine maker Suzlon will re-finance Rs 4,000-4,500 cr of its rupee financial debt & list its European subsidiary Senvion as part of its turn-around plan. Last month, the company’s international bond holders agreed on a cashless restructuring of $485 million bonds 2 years after the company defaulted in paying one set of bond holders. Suzlon is estimating a valuation of ^2 billion (about Rs 16,000 cr) for Senvion & 25 % dilution could produce about Rs 4,000 cr.
The restructuring has come as a breather for the company, which has been making a loss since FY10 with its business affected by slowdown, elimination of tax discounts for wind power in India, high interest burden & firm competitors from Chinese companies.
While on a post tax level the company continues on the show negative result, Suzlon has shown positive earnings before interest, tax & depreciation & amortisation (Ebitda) in last 2 quarters. In the 1st 2 quarters of FY15 Suzlon reported a lack of Rs 751 cr as against a loss of Rs 1,059 cr in the same interval last year. It reported Ebidta of Rs 73 cr in the first one quarter FY15 as against an operating loss of Rs 302 cr in the year-ago 1 quarter.
The company has chalked out 3 steps to shore up its business, which are increasing of volume, enhance business efficiency & financial restructuring through debt re-finance, equity increasing & sale of non-critical resources.
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