Suzlon Energy stock slides by 10 pc after default on borrowings worth Rs 7,256 crore

The share price of Suzlon Energy dipped by 10 per cent on Wednesday morning after the financially-strapped renewable energy solutions provider said it defaulted on loans worth Rs 7,256.38 crore.

The company said that the loans were given by a consortium of 18 banks led by the State Bank of India and Indian Renewable Energy Development Agency (IREDA).

The nature of the loans lent to the company included fund-based working capital, non-fund based working capital, term loans and standby letter of credit. They were due on March 19, 2019.

The company's total amount of outstanding borrowings from banks and financial institutions now stands at Rs 12,785.17 crore. At 10:30 am, Suzlon Energy was trading 10 per cent lower at Rs 3.24 per share.

For 2018-2019, Suzlon reported a consolidated loss of Rs 1,527 crore and debt of Rs 9,624 crore. Care Ratings assigned a default measure for the company in April last year.

In July, the company failed to pay the principal amount of 172 million dollars for outstanding bonds which were due. The outstanding payment was part of a total bond issuance of 546.91 million dollars.

Reports say Suzlon has been in talks with investors like Brookfield for a stake sale. In 2015, pharma billionaire Dilip Shanghvi invested Rs 1,800 crore in Suzlon for a 23 per cent stake and hoped to turn around the company.

When Suzlon defaulted on a repayment of 221 million dollars in October 2012, it was India's biggest bond default till then.

( With inputs from ANI )