Suzlon freezes at 5% upper limit, hits 6-year high; up 25% over QIP price

With India poised to lead decarbonization of its economy, the management said it is seeing renewed enthusiasm from India Inc. to drive this green energy transition.

Shares of Suzlon Energy hit over six-year high after as they were locked in the 5 per cent upper circuit at Rs 21.93 on the BSE in Wednesday’s intra-day trade backed by heavy volumes in an otherwise subdued market. The stock of wind turbine maker was trading at its highest level since May 2017.

Till 10:13 AM; a combined 181.92 million shares had changed hands and there were pending buy orders for 15.22 million shares on the BSE and NSE. In comparison, the S&P BSE Sensex was down 0.08 per cent at 65,166.

With today’s gain, Suzlon Energy was trading 25 per cent higher over its qualified institutional placement (QIP) issue price of Rs 17.55 per share. On August 14, the company had raised Rs 2,000 crore by allotting 1,139.6 million shares to qualified institutional buyers. The company proposed to utilise the proceeds for the repayment of a portion of certain outstanding borrowings availed by the company; and general corporate purposes.
 

HDFC Mutual Fund, BNP Paribas, Bandhan Mutual Fund, Goldman Sachs, ICICI Prudential, Max Life Insurance and Invesco Mutual Fund were allotted over 5 per cent share each of the total issue size.

Suzlon Energy along with its subsidiaries, associates and joint ventures is primarily engaged in the business of manufacturing, project execution and operation and maintenance service (OMS) of Wind Turbine Generators (WTGs) sale of related components of various capacities.

The management said Suzlon recently dedicated 20 GW of wind energy installations worldwide, as the world accelerates its green energy transition and India takes decisive strides to achieve net zero by 2070. With the country poised to lead decarbonization of its economy, the management said it is seeing renewed enthusiasm from India Inc. to drive this green energy transition.

CRISIL Research expects wind energy capacity additions of 34-35 GW over fiscals 2024-28, entailing investments of Rs 2.8 trillion over the period. Suzlon Energy expects approximately 13 GW in the pipeline to be commissioned by Fiscal 2027, factoring in delays due to cost escalation, evacuation infrastructure, etc.

Government policy to tender 10 GW wind capacity annually till Fiscal 2028 is expected to further boost capacity additions. Renewable energy obligations (RGOs), which mandate thermal power generators to generate minimum 40 per cent of their additional capacity from RE sources, are also expected to see an acceleration from wind energy sources.

Capacity additions over the long term will also be driven by increased hybrid tenders, storage and new business model-based tenders, and central government allocations under relatively strong off takers such as SECI and PTC, which also reduces risk compared with direct exposure to state discoms, Suzlon Energy said in QIP document.