Suzlon Energy shares extend gains, hits 5% upper circuit for second day

Shares of Suzlon Energy extended gains on Friday as the stock was locked in the 5% upper-circuit for the second straight day. The stock surged to a record high of ₹53.05 apiece on the NSE, surging 5% to hit the upper circuit limit.

A huge block deal valued at ₹176 crore was made in Suzlon Energy stock on June 20. The data with stock exchanges showed that nearly 3.7 crore shares, or 0.3% of the company's total equity, changed hands. The total transaction amount stood at ₹179 crore.

Suzlon Energy, founded in 1995, is a global renewable energy solutions provider. According to its website, the company has installed over 20.7 GW of wind energy in 17 countries on six continents in the past twenty years. The company has 14 manufacturing facilities across India. The company claims on its website that it is a market leader in India with over 111 wind farms and an installed capacity of over 14,720 MW.

The company’s shares have more than doubled investors' money as the stock has zoomed nearly 277% in the past one year. The stock has given returns of 37.56% year-to-date.

The surge in Suzlon Energy's shares is backed by the government’s push for renewable energy in the form of policies that have boosted the sector, according to reports.

The government has taken initiatives such as bringing solar supply chains under the ambit of the Production Linked Incentive (PLI) scheme, to aid the sector and meet its clean energy target by 2030. Other measures by the government to promote solar and wind energy include the creation of dedicated nodal agencies, to mitigate challenges faced by the sector.

The rally in the company's shares is also attributed to the company’s steady order wins and its efforts towards debt reduction and efficient working capital management, according to reports which cited experts.

Earlier this month, on June 11, the company bagged an order for the development of a 103.95 MW wind power project for AMPIN Energy Transition Private Limited. As a part of the project Suzlon will undertake the installation of 33 wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower of a rated capacity of 3.15 MW each.

The project will be undertaken at AMPIN Energy’s site located in Rajasthan's Fathegarh district. The renewable energy company will also supply the wind turbines to execute the project, including the erection and commissioning along with comprehensive operations and maintenance of services post‐commissioning.