Suzlon Energy on Acquisition buzz

Suzlon Energy rose 1.57% to Rs 243.05 at 11:54 IST on BSE on reports it has joined hands with Bahrain based private equity giant Arcapita to explore a bid for Chinese alternative energy company Honiton Energy Holdings.

The stock hit a high of Rs 245.30 and a low of Rs 232.30 so far during the day. The stock had a 52-week high of Rs 460 on 9 January 2008 and a 52-week low of Rs 220.10 on 7 March 2008.

The company has an equity capital of Rs 299.38 crore. Face value per share is Rs 2.

The current price of Rs 243.05 discounts its Q4 March 2008 annualised EPS of Rs 12.89, by a PE multiple of 18.85.

Honiton Energy Holdings is valued at around $400 million. The company is focused solely on wind energy with assets mostly in North China.

Arcapita, with deals worth over $ 23 billion in the bag, is expected to be the lead partner in this acquisition. The private equity (PE) company has roped in Suzlon as a strategic partner to foray into China`s clean energy market, reports suggested.

Suzlon Energy’s net profit rose 10.2% to Rs 482.55 crore on 33.5% rise in sales to Rs 2,744.40 crore in Q4 March 2008 over Q4 March 2007.

Suzlon Energy provides customers with total wind power solutions.