Suzlon Energy rights issue oversubscribed

Suzlon Energy rights issue oversubscribed

Wind energy firm Suzlon Energy said on Thursday that its Rs 1,200-crore rights issue was oversubscribed by 1.8 times. The rights issue of partly paid-up equity shares closed successfully on Thursday. The issue was for cash at a price of Rs 5, including a premium of Rs 3 per rights equity share, aggregating up to Rs 1,200 crore. The issue resulted in a subscription of 4,354.6 million shares, an oversubscription of 1.8 times. The issue period was from October 11-20.

Suzlon promoters, the Tanti family and Dilip Shanghvi, chairman of Sun Pharmaceuticals and an investor in Suzlon, had committed to stay invested in the company and participate fully in the rights issue. The proceeds from the rights issue would help in paring Suzlon’s debt, which was currently at Rs 3,200 crore. The company would be repaying Rs 900 crore to lenders after the rights issue.

Suzlon’s founder and chairman & managing director (CMD) Tulsi Tanti passed away two weeks ago and the company has transitioned to a new leadership team in the midst of the rights issue. Vinod Tanti has taken over as CMD and went ahead with the issue as planned.

Also read| Suzlon Energy chairman Tulsi Tanti passes away at 64

The Tanti family holds a 14.5% stake in the company while the Shanghvi family has a 12% stake in Suzlon.