Latest Market updates : The amalgamation plan of Suzlon Energy Ltd., which involves merging its wholly-owned subsidiary Suzlon Global Services with itself, has been accepted by the board of directors.
Additionally, the company intends to sell its project business to one or more of its wholly-owned subsidiaries on a slump sale basis.
In addition, Suzlon plans to reclassify and transfer general reserve to retained earnings through the Scheme of Arrangement. Additionally, Suzlon will merge Suzlon Energy Ltd., Mauritius, another wholly-owned subsidiary, with itself.
The business declared that following this restructuring operation, Suzlon’s current shareholding arrangement would remain unchanged.
Suzlon has provided seven justifications for this reorganization effort. Among them are:
- Stronger financial position
- Unified contracting
- Elimination of inter-company outstanding
- Efficient utilisation of resources
- Streamlining group structure and benefit of combined resources
- Efficiency in the business operations of the Wind Turbine Generation and Operations and Maintenance (OMS) businesses
- Sharing of best practices in sustainability, safety, health and environment
As of the first nine months of the financial year 2024, Suzlon turned net cash for the first time since the financial year 2006, according to brokerage firm Anand Rathi. The brokerage’s positive outlook on the maker of wind turbines was supported by the company’s O&M portfolio and new products.
After surging more than 200% in 2023, Suzlon’s shares have increased by just 8% so far this year.
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