Shares of Suzlon Energy surged nearly 6% in an intraday trade on Tuesday after the renewable energy company said it secured a new order from billionaire Gautam Adani-led Adani Green Energy. The stock has rallied nearly 18% in two sessions as compared to a 2% gain in the BSE benchmark Sensex during the period.
On Tuesday, Suzlon share price opened higher at ₹7.62 against the previous closing price of ₹7.46 on the BSE. During the session so far, the stock gained as much as 5.9% to hit an intraday high of ₹7.9, while its market cap increased to ₹7,816.7 crore. There was a surge in volume trade as 350 lakh shares changed hands over the counter on the BSE as compared to the two-week average volume of 452 lakh stocks. The smallcap stock hit a 52-week high of ₹12.03 on January 18, 2022, and a 52-week low of ₹5.43 on June 23, 2022.
Suzlon Group announced today that it has won a new order for the development of a 48.3 MW wind power project for Adani Green Energy. “Suzlon will install 23 units of their wind turbine generators (WTGs) with a Hybrid Lattice Tubular (HLT) tower and a rated capacity of 2.1 MW each. The project is located in Mandvi, Kutch Gujarat and is expected to be commissioned in 2023,” it says.
As per the company, this is a repeat order from Adani Green Energy and is in addition to the existing order of 226.8 MW announced on August 13, 2021.
Suzlon will execute the project with a scope of supply, installation, and commissioning. Additionally, the wind turbine manufacturer will offer post-commissioning operation and maintenance services, it adds.
Girish Tanti, executive vice chairman, Suzlon Group says, “We are delighted that Adani Green Energy Ltd has reaffirmed their trust in us for the additional order for their Wind Energy Project in Mandvi, Kutch, Gujarat. It is always a privilege to partner with India’s leading IPP in their pursuit to power our nation with green energy.”
Ashwani Kumar, CEO, Suzlon Group, says, “We believe that Suzlon is an evident choice for our stakeholders and customers because our products are customized for a variety of Indian wind regimes backed by our service offerings. In our pursuit of Aatmanirbhar Bharat, Suzlon wind turbines typically have 70%-80% domestic content and are manufactured in India through a thriving domestic value chain.”
Suzlon, the market leader in wind energy and manufacturing wind turbine generators, is in process of raising capital worth ₹1,200 via rights issue of shares. The issue, which opens for subscription on October 11 and closes on October 20, is priced at ₹5, which represents a 33% discount to the closing price of ₹7.46, as on October 17.
The Pune-based company will be raising ₹1,200 crore in two tranches by issuing partly-paid up shares in the rights issue. The money being raised on the application will be ₹600 crore (assuming full subscription), of which ₹583.5 crores will be utilised to prepay or repay debt. Suzlon will subsequently call in ₹600 crore as per its requirement, of which ₹316.5 crore will be used to pay off debt. Overall, the company will use ₹900 crore from the rights issue to reduce the outstanding its debt, which stood at ₹3,200 crore as on June 30, 2022. The reduced debt burden will strengthen the balance sheet and unlock working capital to further increase its project execution and finance its growth. The company aims to be debt free in the next eight years.
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