Suzlon Energy share price drops 5% ahead of board meet
In the latest development, Suzlon Energy Ltd., a prominent provider of renewable energy solutions in India, has disclosed that its board of directors is scheduled to convene on July 7 to deliberate on raising capital.
According to an official filing with the exchange, the company has indicated its intention to explore various permissible methods for fundraising, including seeking approval from shareholders if necessary.
This initiative comes less than a year after Suzlon Energy’s successful rights issue in October 2022. During that time, the company launched a rights issue worth Rs 1,200 crore, which was oversubscribed by an impressive 1.8 times. Under the fundraising plan, Suzlon offered 240 crore rights shares at an equity share price of Rs 5.
Suzlon’s stock has experienced a remarkable surge of nearly threefold over the past year, largely attributed to the Indian government’s implementation of a series of policies promoting renewable energy. Remarkably, the stock has surged by approximately 57% in the past month alone.
In May, Suzlon secured a significant contract from Serentica Renewables, a decarbonization platform committed to accelerating the energy transition for energy-intensive industries. The contract involved the purchase of Suzlon’s 3 MW series of wind turbines, marking the fifth order for this series within a month.
Recently, ICICI Securities initiated coverage on Suzlon Energy, rating it as a ‘Buy’ with a price target of Rs 22 per share. The brokerage firm expressed confidence in Suzlon’s ability to capitalize on industry tailwinds, highlighting the favorable impact of governmental policy actions and increased industrial demand, as well as the prospect of round-the-clock contracts.
Notably, Suzlon Energy has been a subject of discussion in CNBC-TV18’s dealing room chatter on June 28, where sources indicated that the company is likely to raise funds through a Qualified Institutional Placement (QIP).
At present, Suzlon’s shares are trading 5% lower at Rs 17.40, marking a break in its seven-day winning streak.
About Suzlon Energy:
Suzlon, a leading company in the wind energy sector, operates in 17 countries worldwide. With a remarkable presence on six continents, they have installed over 12,510 wind turbines. Suzlon’s manufacturing units in India are known for their exceptional quality and innovation, making their wind energy solutions highly sought after for their competitive edge.
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