Shares in troubled Indian wind OEM Suzlon rose sharply after chairman Tulsi Tanti was quoted saying a new suitor was in play for the company.
Suzlon shares rose 12% in late morning in Mumbai after Tanti’s comments were reported in the Mint financial newspaper, continuing a rollercoaster ride for the turbine OEM, which has previously been linked with potential backing from Canadian investor Brookfield and wind OEM Vestas.
“We can’t disclose the name as we have signed a confidentiality agreement,” Tanti, Suzlon's founder, is quoted saying. Suzlon has been approached by Recharge for comment.
Suzlon is battling to agree a resolution plan with its creditors after defaulting on $172m of bond repayments in July.
The company at the end of September denied reports it is poised to tip into bankruptcy, claiming efforts to get its finances back on track are ongoing.
Suzlon posted a 15.3bn rupees ($220m) net loss for the latest financial year and its total debts stood at 111bn rupees at the end of May 2019.
Suzlon’s debt was downgraded in April by Indian financial ratings CARE, which noted the company’s “stretched liquidity position”. It added: “This has been on account of impaired volumes resulting from wind industry’s transitionary phase and delay in monetisation of assets.”