Suzlon Energy rose 2% to Rs 15.10 at 11:30 IST on BSE after the company announced joint ventures with the Unisun Energy Group and with Canadian Solar for solar PV projects in Telangana.
The announcement was made after market hours yesterday, 19 October 2016.Meanwhile, the S&P BSE Sensex was up 170.29 points or 0.61% at 28,154.66.
On BSE, so far 33.69 lakh shares were traded in the counter as against average daily volume of 37.9 lakh shares in the past one quarter. The stock hit a high of Rs 15.35 and a low of Rs 15 so far during the day. The stock had hit a 52-week high of Rs 25.25 on 2 November 2015. The stock had hit a 52-week low of Rs 12.80 on 12 February 2016. The stock had underperformed the market over the past one month till 19 October 2016, falling 8.36% compared with 2.27% fall in the Sensex. The scrip had also underperformed the market in past one quarter, declining 17.32% as against Sensex's 0.71% rise.
The mid-cap company has equity capital of Rs 1004.88 crore. Face value per share is Rs 2.
Suzlon Group announced a joint venture with the Unisun Energy Group for the development and construction of a 15 megawatts (MW) Solar PV Project located at Bhainsa, Adilabad District, Telangana.
According to the contract signed between Suzlon Group and the Unisun Energy Group on 22 August 2016, the Unisun Energy Group shall acquire a 49% stake in Vayudoot Solarfarms Limited, a special purpose vehicle (SPV) set-up by Suzlon for executing this project. The stake will be acquired for a cash consideration of Rs 13.46 crore. Unisun Energy has the option to acquire the balance of the 51% stake in the SPV in the future in accordance with the relevant rules and regulations. The off-taker of the Vayudoot project will be the Telangana State Northern Power Distribution Company Limited (TSNPDCL) for 25 years with a tariff of Rs 5.51 per kWh. Suzlon will be responsible for project commissioning and to provide comprehensive operation and maintenance services for a period of 25 years. The project is expected to be commissioned in the financial year 2017 (FY 2017).
Separately, Suzlon Group announced a joint venture with Canadian Solar, one of the world's largest solar energy companies, for two solar projects of 15 MW each at the sites of Ramannapet and Kamareddy, Telangana. Canadian Solar shall acquire 49% stake in Avighna Solarfarms Limited and Amun Solarfarms Limited, the special purpose vehicles (SPVs) setup by Suzlon for executing these projects. The stake will be acquired for a combined cash consideration of Rs 26.42 crore.
Canadian Solar shall provide its top tier solar PV modules, arrange project financing and contribute its technology expertise to ensure the commissioning of these projects in the financial year 2017 (FY 2017). The offtaker of Ramannapet project will be Telangana Southern Power Distribution Company Limited and for Kamareddy project will be Telangana Northern Power Distribution Company Limited. Suzlon will be responsible for project commissioning and to provide comprehensive operation and maintenance services for a period of 25 years.
Suzlon won solar projects of 210 MW in Telangana through a competitive bidding process and the PPAs for the same were signed in February, 2016. These include one project of 100 MW, one of 50 MW and four projects of 15 MW each.
On a consolidated basis, Suzlon Energy reported net loss of Rs 259.97 crore in Q1 June 2016 compared with net profit of Rs 1014.34 crore in Q1 June 2015. Net sales declined 36.2% to Rs 1649.58 crore in Q1 June 2016 over Q1 June 2015.
The Suzlon Group is one of the leading renewable energy solutions providers in the world with an international presence across 19 countries. The company has recently forayed into the solar space.
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