Suzlon Energy: First profit increased by 365%, then orders and now NSE gives green signal to a big plan, will there be a storm in the stock?

News Topical, Digital Desk : Renewable energy sector company Suzlon Energy 's stock may see action as soon as the market opens on Monday, July 7. The company has given a lot of information about its plan to the exchanges. Suzlon Energy gave information shortly after the market closed last Friday. Let us tell you that the stock of Suzlon Energy closed at Rs 65.65 per share on Friday with a gain of about half a percent. Suzlon Energy said it has received 'no objection' letters from the National Stock Exchange ( NSE) and BSE for its corporate restructuring plan.
 

This approval has cleared the way for the merger of Suzlon Energy 's wholly-owned subsidiary, Suzlon Global Services Limited, with the parent company. The company informed the stock exchange on July 5 that this approval was received on Thursday, July 3. This restructuring is taking place under a 'scheme of arrangement', which includes Suzlon Energy , its shareholders and creditors.
 

Plan to strengthen the balance sheet
Under this plan, Suzlon Energy will transfer the credit balance from its general reserve to retained earnings to reduce last year's losses. The company said, “This restructuring will help strengthen our balance sheet, which will increase our ability to pay dividends and make it easier to attract long-term investors.”

What are the legal and regulatory requirements?

• There are certain conditions that come with the approval from the stock exchange: The company has to provide complete details of consolidation of reserves and losses, historical data, rationale behind the scheme and the balance sheet before and after the scheme.
   
• Transparency is essential: Any additional information provided after the submission of the scheme should be made public on the website of Suzlon Energy and the stock exchange.
   
• No changes can be made to the scheme after filing with SEBI, unless there is an order of the regulator or tribunal.
   
• SEBI rules have to be followed.
   
• The financial data used in the scheme should not be older than six months.
   

Suzlon Energy : Stock Watch

Suzlon Energy shares closed at Rs 65.65 on NSE with a gain of 0.58% or Rs 0.38. In the fourth quarter i.e. January-March 2025, the company's net profit increased by 365% to Rs 1,181 crore, which was Rs 254 crore in the same quarter last year. During this period, the total income of the company was Rs 3,774 crore.
 

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