The announcement was made on Saturday, 23 June 2012.
Meanwhile, the BSE Sensex was up 124.43 points, or 0.73%, to 17,096.94.
On BSE, 15.07 lakh shares were traded in the counter as against an average daily volume of 41.37 lakh shares in the past one quarter.
The stock hit a high of Rs 18.15 and a low of Rs 17.75 so far during the day. The stock had hit a 52-week high of Rs 55.80 on 25 July 2011. The stock had hit a record low of Rs 17 on 4 June 2012.
The stock had underperformed the market over the past one month until 22 June 2012, falling 19.11% compared with the Sensex's 5.90% rise. The scrip had also underperformed the market in past one quarter, sliding 36.68% as against 1.30% fall in the Sensex.
The small-cap company has an equity capital of Rs 355.47 crore. Face value per share is Rs 2.
Suzlon Group announced that it entered into a binding agreement to sell its equity in its wholly-owned China manufacturing subsidiary to China Power (Tianjin) New Energy Development Company (CPNE).
The two companies signed a binding term-sheet on 22 June 2012 for the sale of Suzlon Group's China manufacturing subsidiary - Suzlon Energy Tianjin - to CPNE, with the majority of its assets and liabilities, for approximately $60 million (Rs 340 crore). The sale is subject to requisite regulatory approvals.
Speaking on the development, Tulsi Tanti, Chairman - Suzlon Group said, The dynamics of the wind energy market have changed considerably over the past year, and we are realigning our strategy to the China market with an agile, assetlight business model to achieve the high growth and margins but with lower investments. Therefore, we have decided to realign our business there, as reflected in this transaction. This is also in line with our previously announced strategy to dispose of non-critical Group assets to reduce our long-term debt. We believe this is a positive, strategic move for both companies; the Suzlon Group monetizes a high-quality enterprise that we have built up since 2006, and CPNE expands its base and capabilities in a highly competitive marketplace. We strongly believe that China will maintain its position as the world's largest wind market, and we continue to remain fully committed to China and our customers here. Looking ahead, we will approach this market by combining development with an innovative partnership model.
Suzlon Group established its marketing operations in China in 2005, followed by the set up of its wholly-owned manufacturing facility in 2006. The company has to-date installed over 900 megawatts of wind capacity in China.
On a consolidated basis, Suzlon Energy reported net loss of Rs 300.24 crore in Q4 March 2012, compared with net profit of Rs 211.05 crore in Q4 March 2011. Net sales declined 7.9% to Rs 6699.48 crore in Q4 March 2012 over Q4 March 2011.
The Suzlon Group is ranked as the world's fifth largest wind turbine supplier, in terms of cumulative installed capacity, at the end of 2011. The company's global spread extends across Asia, Australia, Europe, Africa and North and South America with wind energy capacity approaching 20,000 MW installed in 30 countries, operations in 33 countries, and a workforce of over 13,000. The Group offers one of the most comprehensive product portfolios - ranging from sub-megawatt on-shore turbines at 600 Kilowatts (KW), to the world's largest commercial 6.15 MW offshore turbine - built on a vertically integrated, low cost, manufacturing base. The Group - headquartered at Suzlon One Earth in Pune, India - comprises Suzlon Energy Limited and its subsidiaries, including REpower Systems SE.