The shares of wind turbine maker Suzlon Energy Ltd have plummeted by 7% since Wednesday, August 2, after the company announced its plan to go public to raise Rs 1,500 crore to Rs 1,800 crore by selling shares to institutional investors.

The investor’s sentiment was also dampened by the company’s June quarter performance, with the company reporting a dip of 96% in its net profit to Rs 100.90 crore, the revenue was down by 2% to Rs 1,350.98 crore, and EBITDA fell by 4% to Rs 209.50 crore.

The share sale to institutional investors is in regards to helping the company make a substantial dent in its debt and its ongoing effort to turn the business around.

The company’s cash flow has also dipped since it was improved in March FY21 and FY22.

The company’s gross debt stood at Rs 1,806 crore, which is a significant reduction from Rs 13,000 crore in March 2020.

Chief Financial Officer Himanshu Mody said, “Our net debt as of June 30 stood at Rs 1,223 crore, leading to a net debt-to-net worth ratio of 0.9, which is less than 1, which is quite healthy,”

The current fund-raising aims to cut the company’s debt, fund the capital requirements, and ease the working capital.

At 1:00 pm, the shares of Suzlon Energy were trading at Rs 17.19 or 2.70% below its previous close of Rs 18.50 on NSE.