Suzlon shares hit 5% upper circuit for fourth straight day after acquisition of Renom Energy Services

The Suzlon stock hit a fresh 52-week high of ₹80.36 on Monday, jumping over 21% in the last four sessions. The company’s share price has rallied a whopping 300% in the past one year, with over 47% 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 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 of all technologies and capacity 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 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 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.