Dilip Shanghvi to fully participate in rights issue of Suzlon Energy

In a letter to the promoters, dated 3 October, Dilip Shanghvi said, ” “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 the Late Mr. Tulsi Tanti. I believe in the future of green energy and the long term growth of this sector.”

Shanghvi bought a 23 per cent stake in Suzlon for ₹18 billion ( ₹1,800 crore),  in 2015.

Suzlon Energy rights issue aims to raise ₹1200 crore from the rights issue via issuance of additional 240 crore shares of the company. It will open on 11 October 2022 and it will remain open for bidding till 20 October 2022.

The company said that the rights issue will open on 11 October despite the demise of its founder and CMD Tulsi Tanti.

The promoters and the promoter group on 3 October had made a statement to re-confirm their participation in the proposed rights issue and expressed their intention to subscribe to the full extent of their rights entitlement.

Shareholders of the company holding 21 Suzlon Energy shares on rights issue record date (4th October 2022) will be entitled for 5 rights issue. The rights issue is proposed for listing on both NSE and BSE and it is likely to list on 3 November 2022. Allotment of shares is expected on 31 October 2022.

Net proceeds from the rights issue will be used for repayment or pre-payment of a portion of certain outstanding borrowings availed by the company and its subsidiaries and for general corporate purposes. Inga Ventures has been appointed as lead manager to the rights issue.