Canadian Solar Buys 49% Each In 2 Suzlon Units

Canadian Solar Inc. along with China’s Unisun Energy Group bought 49 per cent stakes in solar projects being developed by the Suzlon Energy Ltd.

Suzlon Ltd’s stock rose the most in a month on Wednesday, climbing as much as 6.7 per cent to Rs 15.31 per share. It closed 2.8 per cent higher, at Rs 14.75 per share, following its statement that the deals will provide solar farms in southern India with the top-tier technologies and financing needed to begin operating in the financial year 2017.

Canadian Solar bought a 49 per cent stake in two 15 MW solar projects in Telangana, Suzlon announced in a statement on Wednesday. Unisun Energy took a 49 per cent stake in a third 15 MW project, the Pune, India-based company declared.

Suzlon Ltd, India’s second-largest wind turbine maker, won the right to build 210 MW of solar projects at an auction in January. The award included a 100 MW project, a 50 MW project and four 15 MW projects in Telangana. The Company has now found equity partners to share in 145 MW of development costs.

According to Canadian Solar vice president Steve Iyer, these projects mark the first investment in the Indian solar sector and shall contribute to the global pipeline of 2.4 GW of projects in late-stage development.

Important Fundamentals:

• Sector- INFRA-POWER
• Face Value (Rs.)- 2
• Average Daily Movement [ADM]- 0.65
• Average Volume [20 days]– 1,65,04,650
• 1 Month Return (%)- (-5.60)
• Consolidated FY 15-16 PE Ratio - 15.77
• Consolidated Trailing PE Ratio - 0
• Standalone FY 15-16 PE Ratio - 162.90
• Standalone Trailing PE Ratio - 0
• Book Value - (-14.10)
• Market Cap - Rs 7611.96 (Cr)
• % of Promoter holding pledged – 95.75

Suzlon share price is currently trading at Rs 15.10, down by 0.33 per cent.