Suzlon Energy: Dilip Shanghvi is set to fully participate in the rights issue; what about you?

As this news broke out at the dawn of October 2, speculation was rife that its rights issue would suffer

On October 1, 2022, the wind turbine maker Suzlon Energy suffered a big setback as its Founder & Chairman, Tulsi Tanti, suffered a cardiac arrest and passed away the same day.   

As this news broke out at the dawn of October 2, speculation was rife that its rights issue would suffer, as earlier, the promoters & promoter group had confirmed their participation and informed that they will be fully subscribing to the extent of their rights entitlement. However, with the sudden demise of the Founder and the man at the helm, there were a lot of questions that were left unanswered. However, without further ado, the company clarified that its promoters and the promoter group have re-confirmed their participation in the proposed rights issue and expressed their intention to subscribe to the full extent of their rights entitlement.   

Also, the latest update is that Dilip Shanghvi has conveyed to the promoters of his intention to fully participate in the rights issue of the company. In a letter to Suzlon promoters, Dilip Shanghvi stated, “It is my intention to fully participate in the rights issue of Suzlon along with subscribing for additional shares. I remain committed to the vision of Late Tulsi Tanti. I believe in the future of green energy and the long-term growth of this sector.” 

The funds raised through the issue will be used for repayment or pre-payment of a portion of certain outstanding borrowings availed by the company and its subsidiaries as well as for other general corporate purposes.   

Interestingly, Suzlon Energy promoter had created an additional pledge of about 5.35 per cent. With this, the total equity pledged with SBICAP Trustee has increased to 9.92 per cent.   

The rights issue will open on October 11, 2022, and will remain open for bidding till October 20, 2022.

The Board of Directors of the company has appointed Vinod R.Tanti as the Chairman & Managing Director of the Company with immediate effect, i.e. from 7th October 2022 for a period of 3 years.