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Wind turbine maker Suzlon will refinance Rs 4,000-4,500 crore of its rupee debt and list its European subsidiary Senvion as part of its turnaround plan. Last month, the company's international bond holders agreed on a cashless restructuring of $485 million bonds two years after the company defaulted in paying one set of bond holders. Suzlon is estimating a valuation of ^2 billion (about Rs 16,000 crore) for Senvion and 25 per cent dilution could generate about Rs 4,000 crore.
The restructuring has come as a breather for the company, which has been making a loss since FY10 with its business impacted by slowdown, removal of tax concessions for wind power in India, high interest burden and stiff competition from Chinese companies.
While on a post tax level the company continues to show negative result, Suzlon has shown positive earning before interest, tax and depreciation and amortisation (Ebitda) in last two quarters. In the first two quarters of FY15 Suzlon reported a loss of Rs 751 crore as against a loss of Rs 1,059 crore in the same period last year. It reported Ebidta of Rs 73 crore in the first quarter FY15 as against an operating loss of Rs 302 crore in the year-ago quarter.
The company has chalked out three steps to shore up its business, which are raising of volume, improve business efficiency and financial restructuring through debt refinance, equity raising and sale of non-critical assets.
