Suzlon Energy Share Price/ Suzlon Shares Updates for September 6, 2024: Suzlon Energy shares were in focus. Suzlon Group had monetised non-core assets worth ₹440 crore as part of its broader growth strategy of becoming asset-light and unlocking capital for growth to fund execution of its expanding order book with internal resources, a company statement said. Suzlon Group had announced disinvestment of its corporate headquarters One Earth.
Suzlon Energy stock in focus | Sale of corporate office; a value-accretive step: JM Financial
Considering Suzlon’s increasing order book and the project sites, the decision to sell its large corporate office space appears both strategic and working-capital friendly. With the shift away from owning such extensive office facilities and planned sub-leasing of the property is likely to help the company in mobilizing more working capital for enhanced execution. The transaction, valued within the current market range of INR 7,500 to INR 9,500 per square foot in Pune’s Hadapsar area, seems fairly priced with annual rent under the lease of c. INR 450-500 mn (JMFe). With the company paying annual rent that is about 12% of the sale consideration, compared to FY24 ROE of 28%, investing in its core business is value-accretive. Overall, we view this transaction positively, recognizing its potential to strengthen Suzlon’s financial position and operational performance amid favorable market conditions and effective asset-light strategy.
