Suzlon Energy shares in focus as Independent Director resigns over corporate governance standards

Shares of Suzlon Energy Ltd will be in focus on Monday morning after an Independent Director at the company Marc Desaedeleer resigned from the directorship of the company with effect from June 8. Following this, the Suzlon Energy management held an analyst call to dispense the background to the investors and public at large "in the interest of corporate governance and improving transparency."

In his resignation, Desaedeleer said there were several situations where the corporate governance standards applied by Suzlon Energy did not meet his expectations including situations where communications lacked the level of openness and transparency he would have liked to see.

Desaedeleer said he did send a note to the company covering the situations with the hope the information could be used in a constructive way.

"This is to further inform that Mr. Marc Desaedeleer is not a director in any Indian listed entity. This is to further confirm that based on the resignation letter of Mr. Marc Desaedeleer, there is no other material reason for resignation other than the one provided. The company sincerely appreciates the support extended by Mr. Marc Desaedeleer to the company during his association with the company. This is for your information as also for the information of your members and the public at large," Suzlon Energy said in a note.

Suzlon Energy shares surged 25 per cent in the last one month and 226 per cent in the last six months.

In a note dated May 31, Suzlon Energy said on account of a typographical mistake in the standalone and the consolidated statement of cash flows, few figures were changed. It clarified that there was no impact in the standalone and consolidated balance sheet, the statement of profit & loss and the consolidated segment results submitted to the stock exchanges and/or published in the newspapers in terms of Regulation 33 of the Listing Regulations.

"With Suzlon turning around its financial position and the operational ramp-up expected in FY25, management is looking to address the needs of the business first, and intends to implement such best-in-class suggestions in due course. We, hence, find no reason to stray away from our ‘BUY’ thesis on Suzlon (unchanged TP INR53) driven by the upturn in the wind sector and financial turnaround of the company," said Nuvama Institutional Equities in a note.