Suzlon Shares Are On Investors' Watchlist Today; Here's Why

Suzlon share price Update: The share price of wind turbine manufacturer Suzlon Energy Ltd will remain on investors' watchlist on Monday after a crucial update given by the company regarding the withdrawal of Ajay Mathur by REC Ltd from the board of Suzlon. Suzlon Energy said on Friday that REC Limited has withdrawn its nominee, Ajay Mathur, from the Board of Suzlon Energy Limited since the financial assistance granted by the REC-led consortium in terms of the Rupee Term Loan Agreement dated 28th April 2022 has been paid in full.

In an exchange filing on September 22, 2023, the company said, "This is to inform that REC Limited vide its letter dated 21st September 2023 received by us on 22nd September 2023 (hereinafter referred to as the "REC Letter") has withdrawn its nominee, Mr. Ajay Mathur (DIN: 08805424), from the Board of Suzlon Energy Limited since the financial assistance granted by the REC led consortium in terms of the Rupee Term Loan Agreement dated 28th April 2022 has been paid in full."

"Accordingly, Mr. Ajay Mathur has ceased to be the Nominee Director of the Company with effect from 21st September 2023," it added.

This indicates that Mathur no longer is a director on Suzlon's board with effect from September 21, 2023.

Suzlon Energy Limited informed via an exchange filing on February 27, 2022, that it has received a sanction for a term loan of an aggregate amount of Rs.4,053 Crores from a consortium led by the REC Limited (formerly Rural Electrification Corporation Limited) ("REC") comprising of REC and Indian Renewable Energy Development Agency Limited ("IREDA") (REC and IREDA are collectively referred to as the "New Lenders") to part finance the Refinancing Proposal for the Existing Facilities.

The break-up of the loans proposed to be availed was as follows:

i) REC: Rupee Term Loan Assistance of Rs.3,553 Crores (including fund-based, non-fund based facilities and DSRA), and
ii) IREDA: Rupee Term Loan of Rs.500 Crores.

At that time the company said that the Lead Bank (State Bank of India) had approved the Refinancing Proposal, submitted by the company, for refinancing of the then-existing facilities.

Suzlon secures an order of 29.4 MW from BrightNight:

Another reason why Suzlon Energy shares will remain in focus today is an order of 29.4 MW secured by the company from BrightNight. The company informed Indian bourses on Friday that Suzlon Group, India's largest renewable energy solutions provider, has secured an order for the development of a 29.4 MW of wind installed capacity for a 100 MW co‐located wind‐solar hybrid project of BrightNight, a global renewable power producer. The company said that it will install 14 units of their S120 - 140m wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each at Osmanabad in Maharashtra. The project is expected to be commissioned in phases, beginning in April 2024.

Last week, Suzlon Energy shares closed 1.73% lower at Rs 25.05 per share. At 9:29 am IST on Monday, Suzlon shares were up 1.68% at Rs 25.47 per share on BSE.