The Suzlon IPO was one of the most successful IPOs of its time. They launched the IPO in 2005, and it saw an oversubscription of 15 times. The stock listed on October 19, 2005, at a premium of around 25% from its offer price.
The Investment: The Suzlon IPO price at the upper band was ₹102 (adjusted for stock split). So if you invest ₹10,000 in Suzlon today, you will be able to purchase around 416 shares of the around, with the Suzlon share price being around ₹24. Now, if the stock goes on to hit its IPO price, your initial investment will surge up to ₹42,432.
Background: The energy player has managed to stage somewhat of a comeback at the bourses. In just the past six months, the stock has surged up over 200%. The comeback has also garnered attention from brokerage firms. Last month, JM Financial initiated coverage on the stock with a ‘buy’ rating and a price target of ₹30. The target indicates an around 21% upside from the stock’s last closing price of ₹24.75.
See Also: Is Suzlon A Good Buy?
The brokerage said that as the company is on its way to becoming net-debt free, it expects the wind energy major to deliver revenue and EBITDA CAGR (compound annual growth rate) of 31% and 38% respectively over FY23-26.
Monthly mutual fund data also shows that several mutual funds bought shares of the company in August. 30 mutual funds owned a stake in the company in July, and that number went up to 66 in August. The funds that added the stock to its portfolio in August included the HDFC Multi Cap Fund, Bandhan Tax Advantage (ELSS) Fund, HDFC Large and Mid Cap Fund, and ICICI Prudential MidCap Fund.
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Price Action: Suzlon’s share price was up 0.61% to trade at ₹24.90 in the early hours of trading on Wednesday.
Disclaimer: Benzinga India doesn’t give financial advice. The above article is for educational purposes alone.
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