The share price of Suzlon Energy dipped by 10 per cent on Wednesday morning after the financially-strapped renewable energy solutions provider said it defaulted on loans worth Rs 7,256.38 crore.
The company said that the loans were given by a consortium of 18 banks led by the State Bank of India and Indian Renewable Energy Development Agency (IREDA).
The nature of the loans lent to the company included fund-based working capital, non-fund based working capital, term loans and standby letter of credit. They were due on March 19, 2019.
The company’s total amount of outstanding borrowings from banks and financial institutions now stands at Rs 12,785.17 crore. Today, Suzlon Energy was trading 10 per cent lower at Rs 3.24 per share.
For 2018-2019, Suzlon reported a consolidated loss of Rs 1,527 crore and debt of Rs 9,624 crore. Care Ratings assigned a default measure for the company in April last year.
Reference- Economic Times, Financial Express, Business Standard