Suzlon Energy, Inox Wind hit lower circuits after ministry's order on reverse auctions

Wind energy stocks: Suzlon Energy and Inox Wind touched lower circuits on BSE on Tuesday as their fall continued 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

After opening at Rs 41.70, Suzlon Energy dipped by 4.99 per cent to Rs 40.65. The stock that started its trading session on Tuesday at Rs 41.70 closed it at Rs 40.55, a 4.95 per cent decrease.

The stock slid by 0.77 per cent on Friday, while it fell by 2.96 per cent on Monday.

Inox Wind Share Price

Inox Wind shares hit a lower circuit of five per cent the moment they started trading on the BSE on Tuesday.

The stock opened at Rs 525.70, which is Rs 27.65 less than the previous close of Rs 525.70. The stock ended the trading session at the lower circuit. The stock had slid by 5.26 per cent on Monday.

Why are Suzlon Energy and Inox shares falling?

Suzlon Energy and Inox Ltd shares took a hit on Monday 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.