Suzlon Energy drops on profit booking

Suzlon Energy lost 2.42% to Rs 22.20 at 14:19 IST on BSE, with the stock sliding on profit booking after recent rally after a report indicated that Suzlon Energy Senvion SE unit is preparing to raise about euro 500 million in a bond sale this year.

Meanwhile, the S&P BSE Sensex was down 87.30 points or 0.33% at 26,333.37.

On BSE, so far 15.03 lakh shares were traded in the counter as against average daily volume of 43.14 lakh shares in the past one quarter.

The stock hit a high of Rs 23.25 and a low of Rs 21.85 so far during the day. The stock had hit a record low of Rs 5.72 on 28 August 2013. The stock had hit a 52-week high of Rs 36.80 on 12 June 2014.

The stock had underperformed the market over the past one month till 19 August 2014, sliding 7.71% compared with Sensex's 3.04% rise. The scrip had, however, outperformed the market in past one quarter, surging 103.85% as against Sensex's 8.45% rise.

The mid-cap wind turbine manufacturer has equity capital of Rs 556.94 crore. Face value per share is Rs 2.

Shares of Suzlon Energy had rallied 9.9% in two trading sessions to settle at Rs 22.75 on Tuesday, 19 August 2014, from a recent low of Rs 20.70 on 14 August 2014.

According to the report, Suzlon Energy Senvion SE unit is preparing to raise about euro 500 million ($665 million) in a bond sale this year to fund a takeover of the parent's global business servicing wind turbines. The plan intends to make Hamburg-based Senvion, the third-biggest maker of offshore wind turbines, more attractive to investors ahead of a proposed listing, Suzlon Group chairman Tulsi Tanti was quoted as said in an interview. Suzlon Energy will use the money from Senvion to pay down high-cost loans in India, where it defaulted on bonds in 2012, the report said.

Suzlon Energy reported a consolidated net loss of Rs 750.74 crore in Q1 June 2014, lower than net loss of Rs 1058.90 crore in Q1 June 2013. Net sales rose 20.6% to Rs 4643.01 crore in Q1 June 2014 over Q1 June 2013.

The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity and market share, at the end of 2013. The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with over 24,000 MW of wind energy capacity installed, operations across over 31 countries and a workforce of over 10,000. The Group -headquartered at Suzlon One Earth in Pune, India -comprises Suzlon Energy and its subsidiaries, including Senvion SE.

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