Suzlon Energy shares slip as Dilip Shanghvi & associates terminate pact; check key support, resistance levels

Shares of Suzlon Energy Ltd fell 3.39 per cent to hit a low price of Rs 25.10 in Wednesday's trade against their previous close of Rs 25.98. The stock was last seen trading 1.12 per cent lower at Rs 25.69. Today's fall in the share price came after the renewable energy solutions provider said Sun Pharma promoter Dilip Shanghvi and associates terminated a prior signed pact.

Suzlon, in an exchange filing, said, "Dilip Shanghvi and associates (referred as Investor Group), who had entered into an amended and restated shareholders' agreement with the promoters/promoter group and the company, have informed that the Investor Group has decided to terminate the agreement."

With the termination of the agreement, Hiten Timbadia, the Investor Group's nominee director on the company's Board, has also resigned as director with effect from September 26, 2023, it also stated. There would not be any impact on the operations on account of termination of the agreement, Suzlon further mentioned.

Dilip Shanghvi also issued a statement on behalf of Dilip Shanghvi family and associates (Investor Group). "We signed a mutual agreement with Suzlon and it's promoters in February 2015, making investments to help the company capitalize on the growing opportunities in the renewable energy sector. We support the management's plan to aggressively grow the business as well as their efforts towards regaining market share," the statement read.

"The company has seen a turnaround under a challenging environment, which is a positive sign. While we will continue as investors in the company, we have taken a decision to terminate the formal shareholder's agreement signed in 2015," it added.

Technical analysts suggested that the counter looked 'bearish' in the near-term. Support could be seen at Rs 24.5 level. On the other hand, the stock may find resistance around its 52-week high of Rs 27.

Market expert Ravi Singh said, "Suzlon share prices are volatile amid the recent speculations and investor stir in the company. However, the management is confident that the termination of the agreement by the Dilip Shanghvi and associates will not impact the company's operations. The stock may witness some correction in coming days. Amidst the volatility, Suzlon share price may touch the levels of Rs 22 in near term."

Singh advised investors to stay away from the stock till the sentiment stabilizes.

AR Ramachandran from Tips2trades said, "Suzlon Energy is bearish on the daily charts with next resistance at Rs 27. Investors should book profits at current levels or hold till daily support of Rs 24.5 is broken on a closing basis."

Bourses BSE and NSE have put the securities of Suzlon under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

Considering today's last checked trading price of Rs 25.69, the multibagger scrip has zoomed 139.65 per cent in 2023 so far and 235.82 per cent in a year.

In a separate development, the company said CRISIL has upgraded the ratings of Suzlon Energy to 'CRISIL BBB+/A2' from 'CRISIL BBB‐/A3' with a positive outlook for long‐term and short‐term facilities.

The rating upgrade is a result of Suzlon's successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately Rs 2,000 crores, Suzlon said.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

 

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