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Suzlon stock price plunges over 24 pct; company offers clarification

Devdiscourse News Desk delhi India
Updated: 05-02-2019 20:25 IST
Suzlon stock price plunges over 24 pct; company offers clarification

Shares of Suzlon Energy dived over 24 per cent Tuesday amid concerns over its financial position. The company's shares tumbled 23.26 per cent to close at Rs 3.63 on BSE. During the day, it sank 42.91 per cent to Rs 2.70 -- its 52-week low.

At NSE, shares plummeted 24.21 per cent to close at Rs 3.60. Its market valuation too fell by Rs 584.92 crore to Rs 1,931.08 crore on BSE. On the traded volume front, 197.67 lakh shares changed hands at BSE and more than 18 crore shares on NSE. Suzlon in a clarification to BSE said Tuesday, "in response to certain media queries, we wish to further clarify that none of the shares of the promoters held in the company has been invoked."

"Further, the promoters' shareholding in the company has been pledged for collaterally securing the obligations of the lenders of the company and not towards securing promoters' personal borrowings. And the said pledge too is not mark-to-market." The stock also fell amid media reports of a debt default.

In a separate clarification to BSE, Suzlon said, "we wish to clarify that the company is regular in servicing its debt obligations including servicing obligations towards banks and others for January 2019." The rumours about the company are baseless and "we appeal to all the investors and stakeholders to not to believe the same," it said.

"We are currently under silent period for declaration of financial results for the quarter ended December 2018 and hence cannot comment further; however wish to submit that the company is committed towards compliance of the listing regulations and would ensure necessary disclosures as and when applicable," the filing added.

(With inputs from agencies.)