Suzlon – MSCI Rejig Might See Massive Inflows

Suzlon Energy is an Indian Multinational wind turbine manufacturer founded in 1995, It is headquartered in Pune. The shares of the wind turbine manufacturer may see a massive inflow as of the latest rejig of MSCI.

Suzlon Shares may see inflows of $14 million

Suzlon Energy Ltd. was one of the nine stocks that were included in the MSCI Global Standards Index in November last year, The global index provider has stated that the shares of Suzlon Energy Ltd. have seen an increase in weightage on the MSCI Global Standard Index. 

Due to this increased weightage, streets are expecting that the shares of Suzlon Energy  Ltd. could potentially attract inflows totalling $14 million, which equates to roughly 28 million shares.

About MSCI Global Standard Index

The MSCI World Index captures large and mid-cap representation across 23 Developed Markets (DM) countries. With 1,465 constituents, the index covers approximately 85% of the free float-adjusted market capitalization in each country.

Suzlon Energy along with Paytm and IndusInd Bank were among the nine stocks that were included in this index last November.

Recent proposed restructuring exercise

The wholly owned subsidiary of the company, Suzlon Global Services is set to merge with Suzlon Energy itself and the company has also said that this exercise of amalgamation will not result in any change in the existing shareholding pattern of the company, Suzlon Limited post this exercise.

The company is also looking to transfer its project business on a slump sale basis to one or more wholly owned subsidiaries of the company itself, Slump sale means to transfer a part or whole of a business to another firm. Under this, the buyer will gain ownership of assets, debt, intellectual properties, contracts and staff from the seller.

Conclusion: Following the MSCI rejig, Suzlon Energy could witness a significant inflow of $14 million. This influx of capital suggests growing investor confidence in the company’s prospects, potentially reflecting positive developments or strategic initiatives. The stock of Suzlon Energy Ltd. has given stellar returns of around 400% over the past one year on the back of strong orders, It has given around 6.23% returns in 2024 till now.The stock currently trades at Rs.41.00 a piece and is up by +2% from its previous day closing price.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.