Suzlon Energy shares jump over 9%. Here’s why

Shares of Suzlon Energy surged over 9% to Rs 80.47 in Wednesday’s trade on the BSE, following reports that the company is competing to secure bids for supplying wind turbines to Tata Power.

According to reports, wind turbine original equipment manufacturers, including Siemens Gamesa, Senvion India, Envision Energy, and Suzlon Energy, are competing to secure these contracts. Tata Power has sought bids for the supply of wind turbines with a total capacity of 3 gigawatts. This move is expected to invigorate the wind energy market and enhance competition among turbine suppliers.

Tata Power’s mega order for wind turbines is a significant step towards strengthening the country’s renewable energy sector, as reported by ET. The order scale is expected to intensify competition among turbine suppliers, potentially leading to more affordable and efficient wind energy solutions.

Also Read: Tata Power stock in focus as co seeks bids for 3 GW wind turbine supply for RE facilities

However, earlier this month, Suzlon Energy received “advisory cum warning letters” from the NSE and BSE regarding the resignation of an Independent Director, who had raised concerns about corporate governance.The warning letters by the stock exchanges to the renewable energy company are about the disclosure submitted by the company on June 8 concerning the resignation of Marc Desaedeleer as Independent Director.

In his resignation letter, Desaedeleer underlined that the corporate governance standards applied by Suzlon did not meet expectations, including situations where communications lacked the level of openness and transparency.

At 11.06 am, the stock was trading 9% higher at Rs 80.26 on BSE. Its shares have surged 109% in 2024 to date and 950% over the past two years, with the company currently holding a market capitalization of Rs 1,09,663 crore.

In technical terms, the relative strength index (RSI) of the stock is currently at 40.7. An RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. Suzlon shares were also trading higher than the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day simple moving averages (SMAs).

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