Suzlon Energy shares rise 5% as shareholders approve QIP to reduce debt

Shares of renewable energy firm Suzlon Energy Ltd hit upper circuit of 5% today after shareholders of the firm approved the issue of securities to raise funds via a qualified institutional placement (QIP). The stock was stuck in the upper circuit of 5% at Rs 19.56 on BSE against the previous close of Rs 18.63. Market cap of Suzlon Energy rose to Rs 24,296 crore. Turnover and volumes were high for the Suzlon Energy stock with 868.44 lakh shares changing hands amounting to a turnover of Rs 169.29 crore on BSE.    

This is the fourth straight session of gain for the stock amid volatility in the broader market. The stock has risen nearly 9% or Rs 1.59 since Friday last week.

ALSO READ: Suzlon Energy shares hit 5% upper circuit; rise for fourth session; what's next? 

The stock hit a 52-week high of Rs 20.80 on July 25, 2023 and a 52-week low of Rs 6.60 on October 13, 2022.   

In terms of technicals, the relative strength index (RSI) of the stock stands at 57.4, signaling it's trading neither in the overbought nor in the oversold zone. Suzlon Energy shares have a beta of 1.6, indicating very high volatility in a year. Suzlon Energy stock is trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.       

According to reports, Suzlon Energy is likely to raise up to Rs 2,000 crore by selling shares to institutional investors. The company will use the funds from QIP to cut debt substantially amid its ongoing efforts to turn around the business. 

ALSO READ: Rs 982 to Rs 3,795: This defence stock turned into a multibagger in three years; can hit Rs 4,500 post Q1 earnings

On July 7 this year, board of the firm had approved QIP to raise up to Rs 2,000 crore.  

The firm announced its Q1 earnings on July 25.      

Also read: Rs 302 to Rs 3,660: This power stock turned into a multibagger in three years; likely to hit Rs 7,000 in a year

Suzlon Energy reported a 96 per cent fall in consolidated net profit at Rs 101 crore in the April-June quarter against a consolidated net profit of Rs 2,433 crore in the year-ago quarter. The company's net revenue in the first quarter of this fiscal also fell to Rs 1,348 crore from Rs 1,378 crore in the year-ago period.  

ALSO READ: Rs 50 to Rs 235: This Tata group stock turned into a multibagger in three years; buy, sell or hold?  

Suzlon Energy is a provider of renewable energy solutions. The company is a producer of wind turbines. It offers a range of solar energy solutions, such as solar irradiance assessment, land acquisition and approvals, infrastructure and power evacuation, supply chain, installation and commission and life cycle asset management.