Suzlon Energy, Inox Wind locked in lower circuits for 3rd day in succession; what's keeping investors worried?

Suzlon Energy share Price today, Inox Wind share price: The fall of Suzlon Energy and Inox Wind shares continued on Wednesday, March 6, as both of them hit lower circuits on BSE for the third day in succession. Suzlon Energy hit a lower of circuit of five per cent to slip to Rs 38.70. Inox Wind also hit a lower of circuit of five per cent to go down to Rs 498.8.

The falling spree continues after reports that the Ministry of New and Renewable Energy (MNRE) was looking to bring back "reverse auctions" for auctioning wind power capacity to energy companies.

Suzlon Energy Share Price

The counter opened at Rs 39.53, and was later locked in a 5 per cent circuit at Rs 38.53 on BSE.

Inox Wind Share Price

The stock opened at Rs 499.45 on BSE and declined as much as 5 per cent to hit the lower circuit at Rs 499.45.

Why are Suzlon Energy and Inox shares falling?

Suzlon Energy and Inox Ltd shares are falling days after MNRE reportedly wrote a letter to companies like NTPC, NHPC, SJVN, and more PSUs, asking them the reasons for undersubscription and higher tariff discovery in recent wind bids.

As per the report, the ministry has reinstated an earlier order of reverse auctions, which limits the size to 600 MW for plain vanilla wind tenders.

A reverse auction means that bidders can keep bidding for winning tenders after the initial bids are opened until a bid tariff goes unchallenged.

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