Suzlon Energy has successfully completed raising Rs 2,000 crore via qualified institutions placement (QIP) of its equity shares, Himanshu Mody, Group CFO of Suzlon Energy, said in an exclusive conversation with CNBC-TV18 on Wednesday.

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Explaining further on how the company plans to utilise the funds, the CFO said of the Rs 2,000 crore, about Rs 1,500 crore would go towards debt repayment and the balance will be for working capital and capex purposes.

"This would mean that Suzlon's balance sheet would be completely debt free, in fact, net debt free after a sort of hiatus of 15 years, so we wouldn't in fact be cash surplus without any debt on the balance sheet," Mody said.

The board of the wind turbine maker on August 9 decided to undertake qualified institutions placement of equity shares to an extent of up to Rs 1,500 crore, with an option to retain oversubscription of up to Rs 500 crore.

Suzlon Energy said its committee set the floor price of the QIP at Rs 18.44 a piece. The floor price of Rs 18.44 per share was at a 5.7 per cent discount to Suzlon’s Wednesday closing price of Rs 19.56 per share on BSE.

'Co on track towards delivering 1.6 GW orderbook'

Suzlon Energy's June quarter results have been on track and thus it will be on track towards delivering the 1.6 gigawatts orderbook as per schedule, the CFO noted.

"A part of this is for FY24 and also some part of that is for FY25 already, which we have secured. So I don't want to give any P&L guidance on this, but we are on track towards delivering on our business plan," Mody stated.

The CFO said that the company's revenues will be determined by execution capabilities of the orderbook. "Last year, I think consolidated revenue we did close to about Rs 6,000 crore and we did 664 megawatts in deliveries in FY23. Now, depending on how much of the 1.6 gigawatt we are able to deliver in FY24, would determine how much over the Rs 6,000 crore in revenue we will be able to do."

Commenting on the O&M segment, he said, "In this segment, in fact the business cycle is that once we deliver the machines, there is a three-year warranty that we built into the pricing. So in FY24, FY25, there will be inflationary linked secular growth on the O&M business because the supplies that were done three years ago, due to the financial constraints of the company, and also Covid, the supplies were limited."

So the real uptick in the business for O&M, as per Mody, would be visible from FY26 onwards, which would be a discontinued growth.