Suzlon Energy had, post Tuesday's market hours, said its board of directors will meet on Friday to consider and approve capital raising by way of one or more or combination of permissible methods. 
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Suzlon Energy had, post Tuesday's market hours, said its board of directors will meet on Friday to consider and approve capital raising by way of one or more or combination of permissible methods. Shares of Suzlon Energy Ltd dropped nearly 5 per cent in Thursday's trade to take its losing run to the second straight session. The stock has fallen 10 per cent in the two-day period ahead of the board meet on fundraising this Friday.
The stock fell 4.81 per cent to hit a low of Rs 16.62 on BSE. This was in addition to 4.95 per cent drop in the previous session, thus taking the two day fall to 9.52 per cent. The stock clocked a turnover of over Rs 200 crore on NSE within the first 30 minutes of trade.
Suzlon Energy had, post Tuesday's market hours, said its board of directors will meet on Friday to consider and approve capital raising by way of one or more or combination of permissible methods. The company board will also seek approval of the shareholders, if required.
In a recent note, ICICI Securities said Suzlon Energy has reduced leverage by restructuring its debt and by raising money through a rights issue. As a result, its leverage was merely 1 time debt/Ebitda. Thus, the company has got all the right ingredients to benefit from industry tailwinds, it said.
India, the brokerage noted amended ,the wind energy policy, which adversely impacted capacity addition between FY17-FY23. It has discontinued with reverse e-auctions, introduced wind-specific RPOs, and its plans to auction 10GW per annum. These policies are likely to generate tailwinds for the industry and Suzlon Energy, being the market leader, is best suited to reap the benefits of the same, ICICI Securities said.
ICICI Securities recently initiated coverage of Suzlon Energy, saying it is best equipped to benefit from industry tailwinds. The brokerage expects a sharp uptick in Suzlon Energy earnings from FY24Eonwards. The brokerage has recommended a share price target of Rs 22 on the stock, valuing it at 24 times FY25 EPS.
The domestic brokerage said Suzlon Energy is getting back into shape after a ‘rollercoaster’ journey over the last decade due to a slump in industry volumes and high leverage led by the acquisition of Repower in 2008. However, after a series of debt restructuring, net debt has declined sharply from Rs 13,000 crore in FY20 to Rs 1,200 crore as of Mar’23. In addition, the industry is looking at a revival led by a slew of policy actions.
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