Multibagger stock under Rs 85 in green as company updates scheme of amalgamation involving merger; Market cap surpasses Rs 1,00,000 crore & LIC owns 1.03 per cent stake!
The stock gave multibagger returns of 300 per cent in 1 year and a whopping 1,900 per cent in 5 years.
On Friday, the stock market ended the day in green with the BSE Sensex Index up 1.68 per cent at a level of 80,437 and the NSE Nifty-50 Index up 1.65 per cent at a level of 24,541. Along with the market in green, one multibagger stock jumps 4.10 per cent to Rs 79.93 per share with an intraday high of Rs 80.40 and an intraday low of Rs 74.10. The stock’s 52-week high is Rs 84.40 and its 52-week low is Rs 19.40. The Life Insurance Corporation of India (LIC) holds a 1.03 per cent ownership stake in the company.
The champion stock name is SUZLON ENERGY LTD.
Update
Suzlon Energy Limited (SEL) has announced a modification to its previously approved scheme of amalgamation involving the merger of its wholly-owned subsidiary, Suzlon Global Services Limited (SGSL), into itself. The revised scheme proposes to advance the appointed date for the merger to August 15, 2024, or as subsequently approved by the National Company Law Tribunal, Ahmedabad Bench. This change accelerates the integration process compared to the earlier planned date of December 1, 2024. The merger aims to strengthen SEL’s financial position, streamline operations, and optimize resource utilization by combining the wind turbine generator manufacturing capabilities of SGSL with SEL's operation and maintenance services.
As part of the merger, no shares of SEL will be issued in exchange for the shares of SGSL since it is a wholly-owned subsidiary. The amalgamation is expected to result in benefits such as unified contracting, elimination of inter-company transactions, and the opportunity to share best practices across the combined entity. The company has clarified that the merger, despite involving a related party transaction, does not fall under the purview of Section 188 of the Companies Act, 2013, due to the subsidiary-parent relationship and relevant exemptions.
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About the Company
Suzlon is one of the leading global renewable energy solutions providers. It is a vertically integrated WTG manufacturer. It also undertakes installation and O&M of all WTG sales. Operations include design development and manufacturing of all major components, including rotor blades, tubular towers, generators, control equipment, gears and nacelles. Apart from manufacturing, it offers a full gamut of wind project planning and execution services, including wind resource assessment, infrastructure and power evacuation, technical planning and execution of wind power projects. It also offers O&M services in India and overseas countries.
Suzlon Energy Ltd is a mid-sized company in the power sector, listed on the Bombay Stock Exchange (BSE) & National Stock Exchange (NSE) with a market capitalization surpassing Rs 1,00,000 crore. The company is also included in the BSE's Power Index, reflecting its focus on the power industry. As of June 30, 2024, Suzlon has a healthy order book of 3.8 gigawatts, indicating upcoming projects and potential revenue generation.
Results: According to Quarterly Results, the net sales increased by 50 per cent to Rs 2,021.6 crore and net profit increased by 200 per cent to Rs 302.3 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales increased by 9.4 per cent to Rs 6,529.1 crore and net profit decreased by 77 per cent to Rs 660.35 crore in FY24 over FY23. The company maintained a robust financial position with a net cash balance of Rs 1,197 crore as of June 30, 2024.
In June 2024, FIIs bought 27,17,11,310 shares and increased their stake to 21.53 per cent and DIIs increased their stake to 9.17 per cent stake compared to 19.57 per cent and 6.30 per cent respectively, in March 2024.The stock gave multibagger returns of 300 per cent in 1 year and a whopping 1,900 per cent in 5 years. Investors should keep an eye on this mid-cap power stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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