Suzlon zooms as Dilip Shanghvi buys 23% stake

Shares of Suzlon Energy was up 19% at Rs 22.80 on the NSE after Sun Pharmaceuticals promoter Dilip Shanghvi and family acquired 23% stake in Suzlon Energy for a total consideration of Rs 1,800 crore. The infusion of funds will help the company reduce its debt and also focus on growth.

As per the arrangement, Suzlon will allot 10 million shares on preferential basis to Shanghvi family members and companies owned by him which would result in 23% stake holding in the wind-energy major.

Meanwhile, Tanti and family will continue to remain in control of the company because of a pooling arrangement for voting. As of now, stake of Tanti and other promoter entities will decline to 24% from 30.94% following the acquisition by Dilip Shanghvi and family.

The stock opened at 20% upper circuit at Rs 22.80. At 9:25AM, over 10 million shares were traded on both the stock exchanges.