Suzlon is one of the leading global renewable energy solutions providers. It is a vertically integrated Wind turbine manufacturers. It also undertakes installation and Operation &Maintenance (O&M) of all Wind turbine sales. Operations include design development and manufacturing of all major components, including rotor blades, tubular towers, generators, control equipment, gears and nacelles. Apart from manufacturing, it offers a full gamut of wind project planning and execution services, including wind resource assessment, infrastructure and power evacuation, technical planning and execution of wind power projects. It also offers O&M services in India and overseas countries.
It is one of most public owned (in terms of % owned by general shareholders) and discussed stock in India.
Its revival is one of most interesting financial case studies, the company was struggling to pay its due for long time is not a hidden fact ,
In 2020 it went for it’s first recent debt restructuring
I have simplified in below table how the company went about it
| Type | Debt (INR Cr) | % Total | Treatment |
| Part A | 5188 | 37.76% | Rate Reduced, Term Extended |
| Part B | 4,100.00 | 29.84% | Convert to Equity (optional) |
| Part C | 4453 | 32.41% | Convert to Equity (Confirmed) |
Below is proposal’s extract from their 2020 Annual report
this was an excellent move which helped them reduce 62% of their long term debt. This gave company a new lease of life.
In May 2022, the company made its next financial restructure move, They brought in specialised government agencies and replaced existing lenders
As REC Limited and Indian Renewable Energy Development Agency Limited (“New Lenders”) have specialized knowledge in relation to the power sector in India and would be better placed to address the specific needs of the Group and allow adequate operational flexibility for efficient running of business, below is an extract from their annual report
Then in October, the company raised another INR 1200 crore from a right issue. The net effect of all this activities resulted Suzlon becoming almost debt free by March 2024
Source : Screener.in
The equity base expanded the total numbers of shares in March 2024 was 12,473,087,083 compared to 5,319,774,121 on March 2020 an increase of ~135%. The business’s fortunes seem to be in turnaround as well with improving sales, increasing profitability and healthy order-book.
The retail junta has benefited from management actions, the share price has been on a tear rising 10 fold from INR 8 to almost INR 80
I am not calling out top but the shares have had an extended run, the current m-cap of the company is over INR 1 lac crore, I often see twitter stories of shares touching 300 or even 500 in next two years due to solid order book and continued execution from company.
I shared below with a friend
play the momentum as much as you want, but dont get caught in hopium
Happy Investing
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Agreed that there are only 10 companies with a market cap of more than INR 5 trillion, but, what prevents Suzlon in making that happen. This exuberant market and tearing economic growth can give many such surprises.
Earnings and profits have to go 10X to justify those valuations, if you think that’s possible in 1-2 years good luck!