Dilip Shanghvi says will fully participate in Suzlon Energy's Rights issue

Dilip Shanghvi | Founder and MD, Sun Pharmaceuticals (Image: Reuters)

Suzlon Energy, in an exchange filing, on October 7 informed that Dilip Shanghvi, the founder of Sun Pharmaceuticals Industries Ltd, has conveyed to the promoters of the company his intentions to fully participate in the firm's upcoming rights issue.

In a letter to the Suzlon promoters, 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'.

Suzlon Energy's Rs 1,200 crore rights issue will be open from October 11-20 and the record date for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue was October 4.

In 2015, Shanghvi bought a 23 percent stake in Suzlon for Rs 18 billion (Rs 1,800 crore), helping the company to return to profitability after it became India’s largest convertible-bond defaulter in 2012.

Suzlon was listed on exchanges on October 19, 2005, with a market valuation of around Rs 20,000 crore. In 2008, the firm hit a valuation of Rs 65,474 crore with Tanti's stake worth Rs 43,550 crore. Tanti had a 70 percent stake at the time of listing.

On October 3, the promoters and the promoter group 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.

The sudden demise of Tulsi Tanti, founder and chairman, Suzlon Energy Ltd on October 1 saw tributes pouring in from renewable energy professionals, entrepreneurs as well as the prime minister. Tanti-led promoter group, which includes members of his family and siblings, collectively hold 14.5 percent in the company after lenders converted part of their loans into an equity holding in the company as a part of the debt restructuring in the past.