Synergy Green Industries shares recover on fund-raising plans, higher order flow

Recovery

Shares of Synergy Green Industries gained 15 percent since March 14 when the company shared its plans to raise capital through a rights issue to its existing shareholders. On the number of shares up for grabs, it said that the ratio will be decided by its board of directors or the rights issue panel for an amount less than Rs 49 crore.

On March 21, the company announced on bourses that Senvion Wind Technology, one of the fastest growing wind OEMs in India, has enhanced the orders/schedule over 100 percent from Rs 30 crore in FY 2023-24 to Rs 62 crore in FY 2024-25.

Recovery in share price of SGIL

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With this order enhancement, the company mentioned that its order book visibility is set to cross Rs 400 crore for FY24-25. The stable order book is backed by growth in order flow from existing customers as well as addition of new customers in both wind and non-wind segments, the company said.

Synergy Green Industries shares are down by 15 percent from their life highs. Mid and smallcap shares have fallen sharply this month on a combination of factors. The BSE smallcap index has weakened by more than 7 percent and the midcap index by more than 2 percent in one month.

Warning from the Securities and Exchange Board of India (Sebi) about 'froth' in small and midcap shares, mutual fund body AMFI asking its members to moderate inflows into small and midcap equity schemes, advance tax payments leading to a liquidity crunch, and the Enforcement Directorate raids on entities allegedly laundering the funds of Dubai-based hawala operator HS Tibrewala - all these have weighed on the market sentiment.

Synergy Green Industries shares are seen recovering from its March lows, also outperforming BSE Smallcap index returns.

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