Suzlon’s One Earth property sale may strengthen core, ICICI Securities increases target price to Rs 80
sale of its corporate office, One Earth Property, may strengthen Suzlon Energy's core, domestic brokerage firm ICICI Securities raised its target price to Rs 80 from the earlier Rs 70, while retaining its 'add' rating
Suzlon Energy has entered into an agreement to sell and lease back its prime real estate in Pune over the next 5 years at Rs 440 crore.
“Suzlon had committed to sell non-core assets to lenders in April 2022 at the time of debt restructuring. Despite its robust balance sheet on the back of strong profitability and a fundraiser through QIP, it has decided to sell the asset,” said ICICI Securities in its report.
The capital will be utilised to increase execution and capability of Suzlon to gather incremental orders. This is in line with its strategy to sell non-core assets. This step is likely to help the company in securing cash and improving net worth for executing the core wind energy business.
“Earlier, Suzlon had also acquired a 74% stake in the largest 3rd party O&M business of Renom Energy Services at Rs 660 crore. It is looking to scale up the O&M business through capabilities,” the domestic brokerage firm stated.
Renom is the largest operations and maintenance service provider in the country with assets of 1,782 MW in wind, 148 MW in solar, and 572 MW in BOP under maintenance across customer segments.
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Suzlon is now back in shape after a tumultuous period over the last decade. Suzlon, over the past three years, has
