Suzlon hits upper circuit after shares worth Rs 179 crore change hands

Suzlon shares have skyrocketed 250 percent over the past year.

Suzlon shares hit the upper circuit in the morning trade on June 20, after shares worth Rs 179 crore changed hands in a block deal.

Around 0.3 percent equity or 3.7 crore shares of the wind energy player were exchanged, according to data on the exchanges.

Moneycontrol could not immediately ascertain the buyers and the sellers in the transaction.

At 11.20 am, shares of Suzlon Energy were quoting Rs 51.7 apiece on the NSE, higher by 3.7 percent compared to the previous close. Suzlon's shares are inching closer to its 52-week high of Rs 52.1 per share.

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On June 8, an independent director on the board of Suzlon Energy - Marc Desaedeleer - tendered his resignation from the board, the company informed stock exchange through a regulatory filing.

In the resignation letter, Desaedeleer - who joined Suzlon's board in 2016 - expressed satisfaction with the company's operational and financial performance over the past eighteen months, but raised concerns over compliance and transparency.

"... several situations occurred where the corporate governance standards applied by the company did not meet my expectations, including situations where communications lacked the level of openness and transparency I would have liked to see," Desaedeleer wrote in his resignation letter.

International brokerage Morgan Stanley has an 'overweight' tag to wind energy player Suzlon Energy. The brokerage sees Suzlon as a key beneficiary of India's energy transition, it is well positioned to benefit from the move to greener, cleaner energy.

After going through significant deleveraging, and cutting fixed operation costs, Suzlon is much stronger and leaner. However, the wind energy player's growth potential has not been fully appreciated by the market, noted Morgan Stanley.

Over the past year, Suzlon's shares have jumped 250 percent, more than tripling investors' wealth. In comparison, the Nifty 50 index has gained around 25 percent during the same time.

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