FIIs bought over 171 crore shares & DIIs increased their stake in this wind energy stock under Rs 50; an investment of Rs 1,00,000 turned into Rs 5,14,630 in just 1 year

The stock’s 52-week high is Rs 50.72 and its 52-week low is Rs 8.19.

Today, the Indian benchmark indices started the day in red with the BSE Sensex Index down 0.16 per cent while the NSE Nifty-50 Index is down by 0.08 per cent. On the border market, the BSE Mid-Cap Index is up by 0.60 per cent and the BSE Small-Cap Index is up by 0.96 per cent. Though the market was in the red, one multibagger stock was locked in a 5 per cent upper circuit to Rs 42.20 per share from its previous closing of Rs 40.19 per share. The stock’s 52-week high is Rs 50.72 and its 52-week low is Rs 8.19.

The buzzing stock name is SUZLON ENERGY LTD.

Suzlon Energy Ltd, a leading renewable energy powerhouse with a market cap exceeding Rs 57,000 crore, cements its dominance by joining the prestigious ranks of both the BSE Mid-cap and Power Indices.

Suzlon Energy Limited announced a group reorganization to streamline operations and improve transparency. This involves merging its wholly-owned subsidiary, Suzlon Global Services Limited (SGSL), into itself, creating a single entity focused solely on wind and related businesses. The plan also includes merging Suzlon Energy Mauritius (SELM) with Suzlon Energy Limited (SEL) to reduce organizational layers and compliance costs. Financially, the restructuring strengthens SEL's standalone balance sheet, making it more competitive in public sector tenders. It also eliminates inter-company balances and improves working capital. Additionally, reclassifying reserves into retained earnings will boost SEL's net worth, enabling dividend payouts and meeting PSU criteria. The entire restructuring process, including obtaining approvals, is expected to take 6-10 months. This move highlights Suzlon's commitment to strategic financial management, allowing them to reinvest in potential areas and offer Wind Turbine Generation & Operations and Maintenance (WTG-O&M) services under one entity, ultimately aiming to enhance customer service.

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In March 2024, Foreign institutional investors (FIIs) bought over 171 crore shares and increased their stake to 19.57 per cent and Domestic Institutional Investors (DIIs) increased their stake to 6.30 per cent compared to 7.64 per cent and 5.55 per cent respectively in March 2023. As of March 2024, promoters own a 13.28 per cent stake, FIIs own a 19.57 per cent stake, DIIs own a 6.30 per cent stake and the public owns a 60.85 per cent stake in the company.  

With a strong order book exceeding 3,157 MW at the end of 2023, the company's recent successful placement has led to a debt-free financial position and a significant net cash surplus of Rs 600 crore, indicating exceptional financial health and a promising future.

An investor who took a bold decision by purchasing 12,195 shares on May 16, 2023, at a price of Rs 8.20 per share for a total investment of Rs 100,000 has seen their investment flourish. As of today’s closing, the price of Rs 42.20 per share, the value of their investment has skyrocketed by an impressive 414.63 per cent, reaching a total of Rs 514,630. This translates to a significant gain of Rs 414,630 from their initial investment.

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Disclaimer: The article is for informational purposes only and not investment advice.