Suzlon gains further on new order win in South Africa

Shares of wind turbine maker Suzlon Energy extended gains on Friday powered by a new order win in South Africa, coming on the back of arm REpower's biggest deal on Thursday.

The Pune-based company said it has received notice to proceed to commence construction of the Cookhouse Wind Energy facility located in the Eastern Cape province of South Africa.

Suzlon will supply 66 turbines of the S.88 2.1mw type to the project.

The Cookhouse Wind Farm has been developed in partnership with South Africa-based renewable energy project developer African Clean Energy Developments and AFPOC Ltd. The financial closure of the project was achieved in December with construction commencing in January.

Suzlon had closed up near 16 percent on Thursday after it said that German subsidiary REpower received its largest ever order to supply 175 wind turbines to Canada's EDF EN Inc for a project in Quebec.

Apart from the two big order wins in as many days, the street also seems to have heaved a sigh of relief following reports that market regulator SEBI has disposed off a case against Suzlon Energy and its officials, including Tulsi Tanti, chairman, for alleged violation of the prohibition of insider trading regulations.

Suzlon Energy shares have jumped 36 percent since Jan 24, the day the debt-laden firm announced the empowered group of Corporate Debt Restructuring (CDR) Cell gave formal approval to its proposal to restructure domestic debt. A consortium of 19 banks approved the CDR package of Rs 9,500 crore (USD 1.8 billion).

At 10:25hrs, Suzlon stock was at Rs 25.85, up 5.3 percent on NSE.

Nachiket Kelkar
nachiket.kelkar@network18online.com