The recent stake sale in Hansen for US $365m will come as a major relief to Suzlon Energy, which has been struggling to minimise the impact of rising debt. The company had a dream run from FY05 to FY08, with profits rising more than 40% CAGR. That enabled the company to undertake major acquisitions, including Hansen and RE power. However, the global meltdown caught the company unawares as it had invested nearly US $1.17B during FY08 and FY09. Investments in fixed assets and acquisitions resulted in debt rising sharply from US $632M at the end of FY08 to US $2.5B in FY09. However, the company has managed to bring some normalcy during this year, with its debt restructuring.
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