Suzlon Energy Ltd. stock hit the upper circuit limit for the fourth consecutive session on Monday, to hit its highest level since Jan. 18, 2010. The scrip started its rally after its board approved the acquisition of 22.8 lakh equity shares representing 76% of the equity share capital of Renom Energy Services Pvt.
Renom Energy is the largest multi brand operations and maintenance service provider in the country, with around 2.5-gigawatt assets under maintenance consisting of 1,782 megawatts in wind, 148 megawatts in solar and 572 megawatts in BOP, across customer segments, according to an exchange filing by Suzlon.
Its turnover in fiscal 2024 stood at Rs 213 crore, it said.
The cost of acquisition of 51% stake (15.30 lakh equity shares) is Rs 400 crore, payable in accordance with the terms of the agreement. The cost of acquisition of the remaining 25% stake (7.5 lakh equity shares) is Rs 260 crore payable. "This needs to be acquired within a period of 18 months from acquisition of 51% stake," the filing said.
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Shares of Suzlon Energy rose as much as 4.99% to Rs 80.36 apiece. They were locked in the upper circuit limit as of 11:16 a.m., when the Nifty was 0.3% higher.
The stock has gained over 21% in the last four sessions, 110.37% on a year-to-date basis, and 227.33% in the last 12 months.
Total traded volume so far in the day stood at 1.02 times its 30-day average. The relative strength index was at 80.33, indicating that the stock may be overbought.
Out of five analysts tracking the company, three maintain a 'buy' rating, and two recommend a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 13.5%.
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