Shares of Suzlon Energy rose 31 percent on the back of report that a Danish firm may buy controlling stake in the company.

Vestas is in talks with Suzlon to buy a controlling stake in the company, reported CNBC-TV18, quoting sources.

According to sources, negotiations between Vestas & Suzlon with respect to the valuation is currently in progress, while Vestas is expected to make an open offer post the deal with Suzlon.

However, the deal with Vestas will need approval from Suzlon’s lenders, it added.

At close, Suzlon Energy was at Rs 5.80, up Rs 1.37, or 30.93 percent on the BSE.