Suzlon Energy to go ahead with Rs 1,200 crore rights issue

NEW DELHI: Suzlon Energy on Monday said that the company will go ahead with its rights issue of Rs 1,200 crore. There were concerns in the market that after the demise of founder and CMD Tulsi Tanti, the proposed rights issue might get impacted. 

The firm in an exchange filing on Monday said: “..the promoters and the promoter group have re-confirmed their participation in the proposed rights issue and have expressed their intention to subscribe to the full extent of their rights entitlement. Accordingly, the firm will continue to follow the schedule for the proposed rights issue set out in its letter of offer dated September 28, 2022.”

The firm on September 28 announced it would issue up to 240 crore partly paid-up equity shares for cash, at a price of Rs 5 per rights equity share. The issue will open on October 11 and close on October 20. The funds raised via the issue will be used for repayment or pre-payment of a portion of certain outstanding borrowings availed by the company and its subsidiaries.

Founder, chairman & managing director of Suzlon Energy Tulsi R Tanti passed away on Saturday after he suffered a cardiac arrest on the same day. Tulsi Tanti was 64. After Tanti’s demise, the firm in a statement had said: “In this difficult time, the firm continues to be supported by its experienced board of directors and senior management who are both able and committed to take Tanti’s legacy forward and realise his vision for the company.”