Suzlon to merge wholly-owned subsidiary, transfer project business in restructuring exercise

Suzlon Energy Ltd.'s board has approved the scheme of amalgamation involving the merger of Suzlon Global Services, a wholly-owned subsidiary with itself.

The company also plans to transfer its project business on a slump sale basis to one or more wholly-owned subsidiaries of the company.

Suzlon will also undertake a capital reorganisation exercise through the Scheme of Arrangement by reclassification and transfer of general reserve to retained earnings of the company and also merge Suzlon Energy Ltd., Mauritius, another wholly-owned subsidiary with itself.

The company said that there will be no change in the existing shareholding pattern of Suzlon post this restructuring exercise.

Suzlon turned net cash for the first time since financial year 2006 as of the first nine months of financial year 2024, according to brokerage firm Anand Rathi.

The brokerage had cited the company's O&M portfolio and new products behind its bullish stance on the Wind Turbine manufacturer.

Shares of Suzlon, after a surge of over 200% in 2023, have risen only 8% so far this year.