Suzlon Energy falls 43% on fears of loan default

Mumbai: Suzlon Energy tumbled as much as 43 per cent on the BSE on Tuesday on speculation the company has defaulted on its loans. The stock cut a portion of its losses, ending 23.6 per cent lower, after the renewable energy manufacturer, which has one of the highest retail shareholder base, clarified dismissed the rumours.

“We wish to clarify that the company is regular in servicing its debt obligations including servicing obligations towards banks and others for the month of January 2019. The rumours about the company are baseless and we appeal to all the investors and stakeholders to not to believe the same” Suzlon said in a release to the stock exchanges.

The stock ended at Rs 3.63 after touching an all-time low of Rs 2.7 earlier in the day.

“There were several rumours floated around like loan default and sale of pledge shares by the lenders,” said Paras Bothra, head of research, Ashika Stock Broking.

The stock is owned by 10.2 lakh retail investors.

Suzlon has reported a net loss of Rs 280 crore for the quarter ended September 2018. In the June 2018 quarter, the company had reported a net loss of Rs 575 crore.

Suzlon has a net debt of Rs 6,803 crore and a working capital debt of Rs 3,395 crore as on March 2018.

Promoters have pledged nearly 76.72 per cent of the 19.82 per cent stake held in Suzlon.