The promoters and the promoter group of Suzlon Energy Ltd. 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 (LOF) dated September 28. An addendum to the LOF will follow in due course,” the company said in a filing with stock exchanges.
This follows the sudden death of the company’s founder and chairman & managing director Tulsi Tanti on Saturday after a cardiac arrest.
“Mr. Tanti was the face of the company. There will be a transition phase before others in the group can replace,” said Arun Kejriwal, founder Kejriwal Research.
He said though the company had witnessed highs and lows in the past, “now, one gets a feeling that the company was being resurrected.”
He said the rights issue would go through. “There is no issue on the rights issue. Considering the fact that this is now a restructured account with clear visibility and road map, I do not think there would be any impact on the rights issue,” Mr. Kejriwal added.
“Mr. Tanti was the pioneer and was the face of the [renewable energy] industry. His legacy will continue and his dreams will be fulfilled with much more vigour,” said I. C. Mangal, CEO-GOMS & International Sales (Emerging Markets), Suzlon Global Services Ltd.
‘The rights issue coupled with renewables-industry recovery post the global pandemic will help enhance financial profile of Suzlon,” he added.