Suzlon's Tanti rules out stake sale

Suzlon Energy Chairman and Managing Director Tulsi Tanti has said his family is not planning to sell its stake in the country’s largest wind turbine maker.

According to sources, at an internal interactive meeting of managerial cadre staff with the company management this week, Tanti refuted media reports that Suzlon promoters were in talks with Gamesa Corporacion Tecnologica SA of Spain for a partial or full stake sale. Such meetings are held every quarter to discuss the performance of the company.

“The Tanti family is wholly and absolutely committed to Suzlon and will not exit,” the Suzlon chief told the meeting and in the mail, according to sources.

However, the Suzlon management’s action failed to restore investor confidence, as its shares today tanked 8.4 per cent to Rs 44.75 on the Bombay Stock Exchange.

Suzlon’s third-quarter results announced a few days ago were also not encouraging for investors, despite a record order book worth $7.3 billion. It had reported a net loss of Rs 253.6 crore, compared to a net profit of Rs 14.10 crore in the year-ago quarter.

“While the business environment remains challenging, particularly in the US and parts of Europe, our competitive position remains strong, with a global sales and service organisation spanning 32 countries and 15 Gigawatt operating wind capacity worldwide,” Tanti had said in a statement while announcing the results.

Business Standard had reported a month ago that even though talks between Gamesa and Suzlon had been going on for a while, the deal may still be sometime away, as definitive term sheets were yet to be signed.