Suzlon Energy rights issue: Renewable energy company shares update after founder Tulsi Tanti passes away

Suzlon Energy on Monday said it will continue with its Rs 1,200 crore rights issue opening October 12, after the demise of its founder and CMD Tulsi Tanti.

The company informed the bourses that its promoters have reconfirmed their participation in the rights issue.

"In continuation to the announcement dated 2nd October 2022 (about the demise of Tanti), promoters and promoter group have reconfirmed their participation in the proposed rights issue and have expressed their intention to subscribe to the full extent of their rights entitlement," the regulatory filing stated.

Accordingly, the company will continue to follow the schedule for the proposed rights issue set out in its letter of offer(LOF) dated September 28, 2022.

An addendum to the LOF will follow in due course, it added.

The company informed bourses on October 2, about the demise of Tanti on Saturday evening due to cardiac arrest when he was going home in Pune from Ahmedabad.

As per the LOF, the company will issue up to 240 crore partly paid-up equity shares for cash at a price of Rs 5 per share (including a premium of Rs 3 per rights equity share) aggregating to Rs 1,200 crore.

The issue will be in the ratio of 5 rights equity shares for every 21 fully paid-up equity shares held by eligible shareholders on the record date of October 4, 2022.

The last date for on-market renunciation of rights entitlements is October 14, 2022. The promoters and promoter group have confirmed their participation and they will be fully subscribing to the extent of their rights entitlement, it said.

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 and for general corporate purposes.

Inga Ventures is the lead manager to the issue.