Suzlon Energy gains on sale of its Chinese arm

Chinese manufacturing subsidiary sold for Rs 340 crore

Suzlon Energy gained 3.75% at Rs 18 after the company announced that Suzlon group has sold its Chinese manufacturing subsidiary to China Power (Tianjin) New Energy Development Company for $60 million or Rs 340 crore.

The two companies signed a binding term-sheet for sale of the subsidiary, Suzlon Energy Tianjin, with majority of its assets and liabilities for Rs 60 million, the company said in a statement. The sale is subject to requisite regulatory approvals, the statement added.

Also, this year, the company has a repayment obligation of $750 million including a $550 million in foreign currency convertible bonds. Out of this it has already repaid $306 million worth of FCCB early month.

The stock opened at Rs 17.75 and hit a high of Rs 18.15 on the Bombay Stock Exchange. A combined 1.67 million shares changed hands on the counter in opening deals.