According to reports, India’s largest wind turbine supplier Suzlon Energy dropped nearly 5 percent in morning trade on Wednesday after the foreign research house HSBC rated the stock `underweight’.
“We do not see the company generating sufficient cash from its operations to meet loan repayments,” HSBC reasoned.
The target price for the stock is at Rs 9 a share, according to the report.
Shares dropped nearly 13 percent in six consecutive sessions. At 10:48 hours IST, the stock fell 2.76 percent to Rs 15.85 on Bombay Stock Exchange.
Last week the company had said would issue 78.37 crore equity shares at Rs 18.51 a share, on a preferential basis to its CDR (corporate debt restructuring) lenders.
In January, the Suzlon group announced formal approval of CDR proposal by empowered group of CDR cell. The company’s domestic lenders, a consortium of 19 banks, approved the company’s CDR package of around Rs 9,500 crore.
Last month (February), Suzlon raised more than Rs 240 crore by selling 10.995 crore equity shares. “Part of the funds would be infused into the company under CDR mechanism as promoter contribution,” the company said in its release.