Suzlon energy, India’s largest wind turbine manufacturer demonstrated great strength and commitment by repaying it first tranche of FCCB repayment in time. The company was very well backed by a consortium of around 11 banks, most of them nationalized. This shows the fundamental strength of the company’s business model and management team. The company has been plagued by huge debt issues and this repayment comes as a relief also reducing the overall debt burden by around INR200crs. Sources claim that the current lending has been acquired at a very low interest cost and the lowest interest cost within the Suzlon debt portfolio. The market can now expect the company’s share price which had crashed to under INR18 to rise to over INR 30 in the short term.

1. SUZLON FCCBS – THIS IS WHY YOU
SHOULD STAY INVESTED IN SUZLON
Suzlon successfully repaid FCCB payments of $360
million

2. Suzlon energy, India’s largest wind turbine manufacturer
demonstrated great strength and commitment by
repaying it first tranche of FCCB repayment in time. The
company was very well backed by a consortium of
around 11 banks, most of them nationalized. This shows
the fundamental strength of the company’s business
model and management team. The company has been
plagued by huge debt issues and this repayment comes
as a relief also reducing the overall debt burden by
around INR200crs. Sources claim that the current
lending has been acquired at a very low interest cost
and the lowest interest cost within the Suzlon debt
portfolio. The market can now expect the company’s
share price which had crashed to under INR18 to rise to
over INR 30 in the short term.

3. ANALYST WHO WERE CLOSELY OBSERVING
SUZLON AND DEVELOPMENT AROUND
FCCB REPAYMENTS OBSERVE
 Not just one but 11 banks show confidence in
Suzlon with SBI leading the way! Way to go Suzlon:
 As 11 banks gave support and money to Suzlon for
repaying the FCCBs it gives a clear indication that
companies fundamental values are strong and company
has a potential not only to survive but to make profits.

4.  Suzlon is one of the few companies who have
honored their FCCB commitments in recent times.
That is very commendable. While everyone was
spreading rumors they have done what they have
committed.
 Indian banks are more conservative and pragmatic
and they have shown confidence in Suzlon’s
business model and management. I think this is a
very strong indication for everyone about the
fundamental strength of Suzlon

5. STOCK PRICE
 The Suzlon book price is around 30Rs. The current
fall to 18Rs was mainly due to the negative
hangover of the FCCB repayment. Now that, they
have paid as per commitment the share price is
sure to go to over 30Rs. It is a great time to buy
Suzlon.

6.  The current lending actually reduces the Suzlon
debt by around INR200 crores. That is fantastic and
a very strong step into a great future. There is still
debt that needs reduction but this is a great move.

7.  Suzlon has surprised everyone not just by repaying
the FCCB on time but also because this lending is
actually a very low interest and the lowest interest
borrowing in the Suzlon debt basket

8.  The second tranche of FCCB payment will only
come up in October, and is much smaller almost
one third of current repayment, there is enough
time to handle that. Also with the current payment
on time the confidence in the remainder debt
payment is very high.

9.  With all these observations from Analyst it is
advised and recommended to invest in Suzlon or
stay invested in Suzlon.