Shares of Suzlon Energy slumped 7.5 per cent today after the wind turbine maker announced the sale of its German unit, Senvion SE to US firm Centerbridge Capital Partners LLC for 1 billion euros to cut debt.
After plunging 8.37 per cent to Rs 15.75 in intra-day trade, shares of Suzlon finally ended 7.45 per cent lower at Rs 15.91 on the BSE.
The company scrip zoomed by over 7 per cent after the deal was announced this morning, but later saw a sharp correction.
At the NSE, it tumbled 6.69 per cent to settle at Rs 16.05.
The sharp fall in the stock eroded Rs 417.91 crore to Rs 5,198.09 crore from the company's market valuation.
Experts said that the stock fell on revenue generation concerns post sale of its German unit.
Some analysts say that by selling Senvion, Suzlon loses one of the biggest revenue and profit centres for the group, which posted a loss of Rs 924 crore in FY14 and Rs 528 crore in the September quarter of this fiscal.
In a statement, Suzlon said it has signed with Centerbridge a binding agreement, which also has a future earn out clause of an additional 50 million euros.
Proceeds from the sale of Hamburg-based Senvion SE will be used to pare debt as Suzlon focuses on home and high-growth markets, it said.
The Rs 7,200-crore deal, which is subject to regulatory and other customary closing conditions, is expected to be completed before the end of March, Suzlon said.
At the end of the second quarter of the current fiscal, Pune-based Suzlon had Rs 8,900 crore of local-currency debt and dollar borrowings of USD 1.27 billion, including working capital loan.
