Shares of Suzlon Energy fell nearly 5% on Monday after the Securities and Exchange Board of India (Sebi) imposed penalties totalling ₹29 crore on the renewable energy company and several former executives for alleged violations related to financial reporting and disclosure practices.

Weighed down by Sebi's action, Suzlon shares declined up to 4.94% to ₹54.35 in intraday trade on the BSE amid strong volumes. As many as 1.19 crore shares changed hands, significantly higher than the two-week average volume of about 89 lakh shares.

At the time of reporting, Suzlon shares were trading at ₹54.40, down 4.86%, with a market capitalisation of around ₹74,612 crore. The renewable energy stock hit a 52-week high of ₹74.30 on May 30, 2025, and a 52-week low of ₹38.17 on March 9, 2026.

What fuelled sell-off in renewable stock

Suzlon shares were reeling under pressure today after Sebi's order, issued last week, found that the company had allegedly misrepresented its financial position through a series of transactions involving subsidiaries, inflated profits, and inadequate disclosures in its financial statements.

The market regulator imposed a total penalty of ₹28.95 crore on Suzlon and certain former executives, including Chairman and Managing Director Vinod R. Tanti, Executive Vice-Chairman Girish R. Tanti, former CFO Kirti J. Vagadia, and Amit Agarwal. Sebi levied a penalty of ₹15.95 crore on Suzlon Energy, ₹5.75 crore on Vinod R. Tanti, ₹5.45 crore on Girish R. Tanti, ₹1.5 crore on Vagadia, and ₹30 lakh on Agarwal.

Suzlon Energy has said it will challenge the order before the Securities Appellate Tribunal (SAT). In a stock exchange filing on Saturday, the company said the regulator's findings pertain to financial statements for FY14 to FY18 and that it intends to appeal against the order issued by Sebi's whole time member on May 29. The company also asserted that the order would have no impact on its financial, operational, or business activities.

Sebi's order follows an investigation that originated from an anonymous complaint and subsequent forensic scrutiny of the company's books. The regulator alleged that Suzlon's financial statements did not present a true and fair picture of key financial parameters, including profitability, leverage, net worth, and risk exposure during the review period.

Responding to the development, Suzlon said it would pursue legal remedies and reiterated in its regulatory filing that there would be "no impact on the financial, operational or other activities of the company" arising from the order.

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