Suzlon Energy may give 20% return: SP Tulsian

Tulsian told CNBC-TV18, “I am keeping my positive view on Suzlon Energy and as you have rightly said since they have sold their China unit for about maybe Rs 340-350 crore that indicates that the mobilization of funds for retirement of the first tranche of FCCB which is falling during the last week of July of USD 300 million plus has started happening and again we will see combination of that happening and it will not be the simple raising of an equivalent amount.”

He further added, “Generally in many of the cases where the companies have gone for raising the equivalent amount for retirement of the old FCCB, market has not been very kind with them. But here because some of the efforts are made, maybe to the extent of 20% that has now been done by the company, I am quite hopeful. Though you have the series of the repayment liability happening of FCCB in the next 6 to 8 months for the company but even if this first one for which the 45 days extension has been obtained by the company I am maintaining quite positive view and if one can take a view on that this stock can give a return of about maybe 20% from hereon can expect a price of Rs 20 in the next 45 days or so.”