Shares for Suzlon Energy of India fell by 45% as investors admitted trepidation on the wind turbine manufacturer's debt diluted shareholding ration after sale of founder's shares was made. The shares sold comprised 6.2% of the company and resulted in 2.4 billion rupees or US$44.5 million.
The proceeds would be used to restructure its outstanding debt according to Suzlon CFO Kirti Vagadia. He told Reuters, "The promoter stake sale is not for any personal purpose but for supporting the company. The promoters are fully committed to the company. The business fundamental of the company is intact. We are getting very good orders."
Suzlon shares fell to 13.35 rupees before recovering from 44.9% loss to 34% at market close. Much of the fear is fueled by its debts, as the company's lenders recently approved a restructuring plan worth US$1.8 billion after its default of a US$200 million bond convertible redemption due last October 2012.
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