Suzlon Energy jumped 10.72% to Rs 10.95 at 10:02 IST on BSE on a media report that the company is planning to raise Rs 10000 crore by listing its German subsidiary on the London Stock Exchange.
Meanwhile, the BSE Sensex was up 90.77 points, or 0.41%, to 22,430.74.
On BSE, so far 19.09 lakh shares were traded in the counter, compared with an average volume of 14.05 lakh shares in the past one quarter.
The stock hit a high of Rs 11.35 and a low of Rs 10.35 so far during the day. The stock hit a 52-week high of Rs 15.10 on 22 April 2013. The stock hit a record low of Rs 5.72 on 28 August 2013.
The stock had underperformed the market over the past one month till 28 March 2014, falling 1.79% compared with the Sensex's 5.78% rise. The scrip had also underperformed the market in past one quarter, falling 6.17% as against Sensex's 5.41% rise.
The small-cap wind turbine manufacturer has an equity capital of Rs 497.63 crore. Face value per share is Rs 2.
According to the report, Suzlon Energy is planning to sell shares in its German subsidiary Senvion SE (erstwhile RE Power) to raise Rs 10000 crore by listing it on the London Stock Exchange (LSE). The company will have to dilute 25% stake in Senvion to meet the UK listing norms and expects a Rs 40000 crore valuation for the unit. The share sale is likely to be the biggest offering in rupee terms by an Indian firm in the global market in recent years, the report added.
Report suggested that Suzlon, with a debt of Rs 13000 crore, has been making losses for the last three years. It has also been unable to pay its bondholders due to the slowdown in the global markets. However, with a recovery in the global economy and upturn in the wind energy markets, Suzlon wants to cash in on this opportunity to sell Senvion shares, which has surplus cash, to reduce its debt and turn profitable.
On a consolidated basis, Suzlon Energy reported a net loss of Rs 1075.25 crore in Q3 December 2013, lower than net loss of Rs 1154.53 crore in Q3 December 2012. Net sales rose 24.8% to Rs 5009.82 crore in Q3 December 2013 over Q3 December 2012.
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 2012. The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with over 23,000 MW of wind energy capacity installed, operations across over 30 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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