Suzlon Energy shares in focus as board to consider fundraising on Friday

Shares of Suzlon Energy Ltd will be focus on Wednesday morning after the company informed stock exchanges that 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.

The announcement came post Tuesday's market hours. Earlier, the stock closed the day at Rs 18.37, up 8.96 per cent. This was the seventh day of successive rise for Sulzon Energy shares. The scrip has jumped 35 per cent in the period mentioned.

The stock has been in news  after ICICI Securities initiated coverage, saying Suzlon Energy 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 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.

ICICI Securities said the Indian power grid needs more wind in its mix. The need to enhance wind capacity addition (post-subdued activity in the recent past) has finally dawned upon the stakeholders.