Shares of wind energy major Suzlon Energy crashed nearly 14 per cent today post the news of its founder Tulsi Tanti’s death. During intraday trade on Monday, the shares slumped as much as 13.79 per cent to trade at Rs 7.50 from their previous close of Rs 8.70 on NSE. On BSE, Suzlon fell 6.75 per cent to hit an intraday low of Rs 7.46.
Later, it rebounded more than 1.5 per cent after plunging sharply in opening deals. The stock climbed 1.63 per cent to trade at Rs 8.13 in late morning deals. Last week on Saturday evening, Tulsi Tanti (64), founder and chairman of Suzlon Energy, passed away due to cardiac arrest. Tanti’s death comes at a time when Suzlon Energy is staring at the Rs 1,200 crore rights issue on October 11.
Tanti was in Ahmedabad on Saturday, attending a series of meetings on his company’s forthcoming Rs 1,200 rights issue. He felt uneasy in his car on his way back home from the Pune airport and died before he could be taken to the hospital.
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He was widely known as the visionary who pioneered the renewables revolution in India and spearheaded the wind energy revolution in India with the founding of Suzlon Energy in 1995.
He envisioned the opportunity in the Indian renewable energy industry at a time when the global wind energy market was dominated by international players and characterised by expensive and complicated technologies that were largely unviable for traditional businesses.
The Suzlon group was looking to repay debt, fund working capital and deploy the rest for general corporate purposes.
The company today informed the bourses that its promoters have reconfirmed their participation in the rights issue.
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“In continuation to the announcement dated October 2, 2022, 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. Accordingly, the Company will continue to follow the schedule for the proposed rights issue set out in its letter of offer dated September 28, 2022,” it said.
Suzlon Energy said it would issue 240 crore rights or shares at an issue price of Rs 5 per equity share to raise Rs 1,200 crore. Shareholders of the energy stock would be entitled to 5 equity shares of the energy company for every 21 shares (5:21) held on the record date.
The rights issue would open on October 11, 2022, and conclude on October 20, 2022.