Suzlon Energy may open lower after Tulsi Tanti’s demise; to trade ex-rights today

Shares of Suzlon Energy will likely be under pressure today after the passing away of the company’s founder, chairman and managing director Tulsi Tanti. The shares of the company will also trade ex-rights today.

Popularly known as India’s ‘wind man’, Tanti was the pioneer of renewable energy revolution in the country. He founded Suzlon Energy in 1995 and the company’s current market capitalisation stands at Rs 8,763.59 crore.

The stock saw a decline of over 18 percent last month. In the week gone by, it was largely flat and closed at Rs 8.70 apiece.

Also Read: Tulsi Tanti: The wind whisperer who battled storms

After the untimely demise, CEO Ashwani Kumar in a letter to the employees wrote: “While the world will remember Tulsibhai as the pioneer of wind energy and a warrior against climate change, we know him better as the champion of creating a better world for our future generations. If there was anything that our CMD taught us it was resilience, the will to fight back and the strength to stand up tall in our worst times.”

Tanti was truly a champion of resilience. He persevered as the company’s debt piled on. As of Q1FY23-end, net debt of the company stood at Rs 2,774 crore. On September 5, shares of the wind turbine manufacturer gained nearly 20 percent and were locked in the upper circuit after SBICAP Trustee said additional equity pledge had been created in favour of the company.

SBICAP Trustee is acting as trustees for the benefit of REC-led consortium (comprising of REC Limited and Indian Renewable Energy Development Agency Limited), who have financed the company.

Suzlon Energy recently approved raising Rs 1,200 crore through a rights issue of 240 crore shares. Five rights equity shares will be issued for every 21 fully paid-up equity shares held by the eligible shareholders of the company. The number of outstanding equity shares will increase from 1007,30,87,083 to 1247,30,87,083 after the issue (assuming full subscription). The issue is set to open on October 11.

In fact, hours before his untimely demise, Tanti was meeting shareholders, investors, and the media, updating them about the upcoming rights issue. The company’s management told Moneycontrol over the weekend that it was confident of the success of the issue.