Suzlon Energy shares extend rally, rise nearly 5% to hit 52-week high; check details

The stock reached its upper circuit limit of ₹84.37 apiece in morning deals. On Monday, August 12, shares of the company were locked in a 5% upper circuit for the fourth consecutive session.

The company’s share price has rallied a whopping 322% in the past one year, with over 50% gains coming in the past one month.

Last week, on August 6, Suzlon Energy announced that it has executed definitive agreements for the acquisition of a 76% stake in India’s largest multi-brand renewable energy operations and maintenance service (O&M) company Renom Energy Services, in two tranches.

The immediate acquisition of a 51% stake was for a consideration of ₹400 crore, while the acquisition of another 25% within the next 18 months is for an additional consideration of ₹260 crore.

Upon completion of the acquisition, Renom Energy Services would become a subsidiary of Suzlon Energy. However, it will continue to operate as an independent board-managed service provider.

Renom Energy provides comprehensive operations and maintenance services for all technologies and capacities of wind turbines and solar assets under a single roof. It has around 2.5 GW of assets under maintenance, consisting of 1,782 MW in wind, 148 MW in solar, and 572 MW in BOP (balance of plants) across customer segments. Its turnover for the financial year ended March 2024 was around ₹213 crore.

The strategic acquisition of Renom gives the Suzlon Group a comprehensive presence and penetration into the non-Suzlon segments of the Indian wind energy services industry.

Shares of Suzlon Energy have been on a rallying spree since the company reported strong Q1 results on July 23. The company reported a 199% jump in net profit to ₹302 crore in Q1FY25 and a nearly 50% year-on-year rise in consolidated revenue at ₹2,016 crore.

The Suzlon Group is one of the leading renewable energy solutions providers in the world with over 20.8 GW of wind energy capacity installed across 17 countries as of June 2024.

Suzlon Energy shares are trading 2.86% higher at ₹82.6 apiece on the NSE at 12:30 pm.