Shanghvi says will participate in Suzlon Energy's Rs 1,200-cr rights issue

Suzlon Energy, on Friday said, that Dilip Shanghvi, the founder of Sun Pharmaceuticals, had conveyed to the promoters of the company his intentions to fully participate in the firm's upcoming Rs 1,200-cr rights issue. The rights issue will open on October 11, closing on October 20.

Shanghvi had bought a 23 per cent stake in Suzlon for Rs Rs 1,800 crore in 2015, helping the company to return to profitability after it became India’s largest convertible-bond defaulter in 2012.

In a letter to the Suzlon promoters, Shanghvi said that he would subscribe for additional shares as part of the rights issue. "I believe in the future of green energy and the long-term growth of this sector, " he said. 

On October 3, the promoters of Suzlon, the Tanti family, had made a statement to the exchanges re-confirming their participation in the proposed rights issue. This came after the demise of CMD Tusti Tanti on October 1 following a cardiac arrest. 

The Tanti-led promoter group, which includes members of his family and siblings, collectively hold 14.5 per cent in the company after lenders converted some loans into an equity holding in the company as a part of a debt restructuring plan.