Shares of this multibagger stock engaged in the ‘renewable energy’ sector hit the 5 percent upper circuit on Thursday after the company is set to launch Rs 2,000 crore QIP. The company’s scrip has soared more than 10 percent in the last five trading sessions from Rs 18.50 to the current price level.
With a market capitalization of Rs 25,458 crores, the stocks of Suzlon Energy Limited opened their trading hour on Thursday at Rs 19.95, and, post couple of trading hours, the shares got locked in the 5 percent upper circuit at a price of Rs 20.53 apiece.
Such sharp movements in the stock prices are witnessed after the company, through a regulatory filing with the BSE dated 9th August 2023, informed that the company’s Board, along with the shareholder’s decision via special resolution, approved the Qualified Institutional Placement (QIP).
The QIP pertains to the equity shares to an extent of up to Rs 1,500 crores along with the option to retain an oversubscription of up to Rs 500 Crores. The company, after a resolution of the shareholders, has set the floor price at Rs 18.44 per equity share, a discount of around 10 percent to the current price level.
Keeping a purview of one year, the stocks of Suzlon have been successful in delivering multibagger returns of around 200 percent to its shareholders, i.e., if someone would have invested Rs 1 Lakh into the stock, it would have converted to Rs 3 Lakhs within a period of one year.
According to the shareholding pattern data available for the June 2023 quarter, Retail Investors hold a 71.77 percent stake in the company, and Foreign Institutional Investors (FIIs) hold a 7.79 percent stake in the company.
Suzlon Energy Limited is engaged in the business of provision of renewable energy solutions. The company’s product portfolio includes wind turbine generators and other related components. It generates a majority of its revenue from Indian operations but also has a global presence in countries like Europe, Canada, and the United States.
Written by Amit Madnani
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