Shares of Suzlon Energy snapped two-day losing streak on Wednesday after Dilip Shanghvi Family and Associates (DSA) commenced acquiring 26% stake from public shareholders via a mandatory open offer.
The counter advanced as much as 3% in Wednesday’s trade, before settling with 0.5% gains at R28.30.
DSA along with other acquirers – persons acting in concert (PAC) – on February 14 announced to acquire 157.64 crore Suzlon Energy shares at R18 per share for a total consideration of R2,837.59 crore. The offer will end on April 28.
Suzlon Energy entered into a definitive agreement with Dilip Shanghvi for equity investments of R1,800 crore (23% stake). Since then, Suzlon shares have risen 55% on the stock exchanges to a 10-month high of R29.50, adding R3,392 crore in market cap.
Analysts said the cash infusion by Dilip Shanghvi was a welcome move for the company reeling under huge debt. Three analysts (60%) have a buy rating on the stock, compared with one ‘hold’ and one ‘sell’ rating, according to a Bloomberg survey of analysts.
HDFC stated the company was on “the cusp of a turnaround”. Moreover, the debt reduction exercise and expectations of government’s policy framework for the renewable energy sector also augured well for the company, analysts said.
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