Tulsi Tanti’s loss drags Suzlon Energy down, despite rights issue assurance

Share price of wind turbine manufacturer Suzlon Energy opened over 10 percent lower today, despite the company calming the nerves of investors and informing that the proposed 5:21 rights issue was on-track despite the death of top boss Tulsi Tanti on Sunday.

“In continuation to the announcement dated October 2, 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,” the company said in a regulatory filing.

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At 9:20 am, the share was quoting Rs 7.90 apiece on the National Stock Exchange, as it began trading ex-rights. In the week gone by, it was largely flat and closed at Rs 8.70 apiece. In 2022 so far, the stock has declined closed to 29 percent.

Popularly known as the ‘wind man’ of India, Tulsi Tanti was a champion of resilience. He founded Suzlon in 1995 and persevered while the company’s debt piled on. Under his leadership, Suzlon expanded to 100+ wind farms with an installed capacity of over 13,450 MW in India. As of Q1FY23-end, net debt of the company stood at Rs 2,774 crore.

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

A part of this debt will be serviced by the upcoming Rs 1,200 crore rights issue of 240 crore shares. The record date for this has been set for October 4, while the issue will open from October 11-20. In fact, hours before his untimely demise due to cardiac arrest on October 1, Tanti was meeting shareholders, investors, and the media, updating them about the upcoming rights issue.

The number of outstanding equity shares will increase from 1007,30,87,083 to 1247,30,87,083 after the issue (assuming full subscription).