Suzlon buzzing loud

Suzlon Energy is in the limelight since the opening bell today. Opening slightly higher at Rs.10, the stock went up to Rs.10.11, very close to its 5% UC of the day at Rs.10.20. Its 52-week high is at Rs.13.10.

The stock zoomed up after the lenders gave their approval to the company to convert its entire outstanding optional convertible debentures (OCDs) worth Rs 4,100 crore into equity shares.

This will mean that the lenders/creditors will now have the upper hand with their stake in the company rising to 35% vis-à-vis promoter, Tulsi Tanti’s stake going down to 12.7%.

REC is taking a 4.3% stake via new loans to Suzlon. This loan will be used for refinancing the older loans.