IDEAS home Printed from https://ideas.repec.org/a/sae/fbbsrw/v7y2018i1p16-21.html
   My bibliography  Save this article

Green Investing and Indian Investors: The Case of Suzlon Energy

Author

Listed:
  • Niti Nandini Chatnani

Abstract

In the early 2000s, ‘green investing’ caught the fancy of investors worldwide as they realized that being environmentally conscious could also be financially rewarding. The Suzlon Energy Initial Public Offering (IPO) in India in September 2005 received much attention, and was oversubscribed nearly 25 times. Many investors regarded Suzlon as a green investment opportunity, and the stock touched record high levels over the next three years of its listing. However, some large and highly leveraged acquisitions made with the objective of achieving fast growth led to major financial distress for the company. The race to capture new markets with new products also led to compromises on product quality and customer service. A good business model was damaged by bad investment decisions, and stock prices declined steadily. Suzlon disappeared from the radar of green investors till an acquisition 23 per cent stake in Suzlon Energy by a strategic investor revived the market’s interest in this stock. This paper is a case study of how, despite being a green business with great potential, Suzlon took on risks that led to major losses for its investors, and lessons for green investors of India.

Suggested Citation

  • Niti Nandini Chatnani, 2018. "Green Investing and Indian Investors: The Case of Suzlon Energy," FIIB Business Review, , vol. 7(1), pages 16-21, March.
    • Handle: RePEc:sae:fbbsrw:v:7:y:2018:i:1:p:16-21
    DOI: 10.1177/2319714518763395
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/2319714518763395
    Download Restriction: no
    File URL: https://libkey.io/10.1177/2319714518763395?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:fbbsrw:v:7:y:2018:i:1:p:16-21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.