Shares of Suzlon Energy Ltd were locked at 5 per cent lower circuit limit on Tuesday for the second straight session. Tuesday was the third day of consecutive fall for the largest renewable energy solutions provider, as NSE put the stock under the long-term additional surveillance measure (ASM) stage IV. There are 142 stocks on NSE that are put under long-term ASM and 29 others under short-term ASM framework.
Stocks are put under ASM to safeguard investors due to price variation and volatility, thus, enhancing market integrity. The main objective of these measures are to alert and advise investors to be extra cautious while dealing in these securities. These measures are there to advise investors to carry out necessary due diligence while dealing in securities.
Shares of Suzlon Energy stood at Rs 26.31, down 5 per cent.
For stocks under long-term ASM framework, the review period is 90 calendar days. These stocks are subject to stage-wise exit. The stage wise review is done on a weekly basis. Shares of Suzlon Energy were up 226 per cent in the last six months. Non-promoter holding in the company stood at 86.71 per cent as on June 30. A total of 25,72,127 individual investors owned 22.32 per cent stake in the company while 5,062 owned another 18.92 per cent stake in the wind turbine maker.
Rating agency Crisil recently upgraded Suzlon's long‐term and short‐term facilities to 'CRISIL BBB+/A2' from ‘CRISIL BBB‐/A3‘ with outlook 'Positive. Crisil said its outlook reflected Suzlon's strengthened financial position, operational excellence and favourable sectoral tailwinds.
"The rating upgrade is a result of Suzlon's successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately Rs. 2,000 crores. The reduction in fund‐based borrowings, steady cash flows from the operations and maintenance (O&M) services business, and improved business profile in the wind turbine segment have contributed to this upgrade," the company informed stock exchanges on September 26.
Chief Financial Officer Himanshu Mody said by successfully repaying debt and improving financial flexibility, his company was in a better positioned to seize opportunities within the renewable energy sector.
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