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Suzlon Plunges Most in Four Years After Founders Sell Shares
Feb. 28 (Bloomberg) — Suzlon Energy Ltd. fell the most in more than four years after founders of India’s largest wind turbine maker sold 109.9 million shares.
The stock plunged 34 percent, the biggest drop since Oct. 24, 2008, to 16 rupees at the close in Mumbai. Suzlon’s founders sold the shares, which account for 6.19 percent of the company, to raise 2.4 billion rupees ($44 million) to repay lenders as part of a debt-recast plan, according to an e-mailed statement from the Pune-based turbine maker today.
Suzlon completed refinancing $1.8 billion in domestic debt last month after failing to pay $209 million of foreign-currency convertible notes on Oct. 11. That was India’s biggest convertible-bond default and fanned concerns that creditors may demand immediate payment of other loans.
“Founders selling their stake in the company to raise funds for repaying debt shows their desperation,” said Sudip Bandyopadhyay, chief executive officer at Mumbai-based Destimoney Securities Pvt.
Suzlon spokesman Anoop Kayarat declined to comment on the share-price decline.
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