Suzlon Energy gains after receiving additional working capital sanctions

Suzlon Energy rose 2.48% to Rs 20.70 at 11:15 IST on BSE after the company said that it has received additional working capital sanctions of about Rs 2300 crore over and above the existing limits.

The announcement was made by the company during market hours today, 15 January 2016.

Meanwhile, the S&P BSE Sensex was down 27.85 points or 0.14% at 24,737.79.

On BSE, so far 34.52 lakh shares were traded in the counter as against average daily volume of 72.77 lakh shares in the past two weeks. The stock hit a high of Rs 21.10 and a low of Rs 20.20 so far during the day. The stock had hit a 52-week high of Rs 31.35 on 19 March 2015. The stock had hit a 52-week low of Rs 14.15 on 23 January 2015. The stock had underperformed the market over the past one month till 14 January 2016, dropping 3.81% compared with Sensex's 1.5% fall. The scrip had also underperformed the market in past one quarter, declining 14.95% as against Sensex's 7.49% fall.

The large-cap company has an equity capital of Rs 997.91 crore. Face value per share is Rs 2.

Suzlon Energy announced that it has received an additional sanction of working capital lines (substantially non-fund based) of about Rs 2300 crore ($344 million) to meet its requirements for execution of sizable order backlog and pipeline. The additional working capital will enable Suzlon to scale up its volumes. The additional working capital sanctions are over and above the existing working capital facilities of about Rs 4330 crore ($644 million).These facilities will be catalyst to help Suzlon tap the growth opportunities in Indian and international renewable energy sector, Suzlon said.

On a consolidated basis, Suzlon Energy reported net loss of Rs 181.10 crore in Q2 September 2015 as against net loss of Rs 656.21 crore in Q2 September 2014. Net sales declined 66.8% to Rs 1768.42 crore in Q2 September 2015 over Q2 September 2014.

The Suzlon Group is a leading wind turbine manufacturer in India with a global presence. The Group, headquartered at Suzlon One Earth in Pune comprises Suzlon Energy and its subsidiaries.

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