Suzlon surges 7% after Shanghvis pledge securities worth Rs 3,800 crore

MUMBAI: Shares of Suzlon Energy surged over 7 per cent in intraday trade after reports that Shanghvi family is providing up to Rs 3,800 crore security.

According to the reports, the security will enable the company to obtain bank guarantees and letters of credit to continues hassle free business.

Suzlon’s current working capital level is 50 percent of its order book. Additional bank funding will help cover fixed overhead costs and boost its capacity utilization.

The company plans to build wind-power equipment factories as it seeks to recover from India's biggest convertible-bond default two and a half years ago.