Suzlon Energy shares plunge on news of founder's death

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Suzlon Energy shares plunge on news of founder's death

The wind energy major Suzlon Energy's shares crashed nearly 14 per cent on the news of its founder Tulsi Tanti's death. The shares fell by 13.79 per cent to 7.50 from their previous close of Rs 8.70 on the NSE during intraday trade on Monday. On the BSE, Suzlon fell 6.75 per cent to hit an intraday low of 7.46.

It rebounded more than 1.5 per cent after plunging sharply in opening deals. The stock was up 1.63 per cent to trade at Rs 8.13 in late morning deals. Last week, Tulsi Tanti 64 founder and chairman of Suzlon Energy passed away last week 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.

On Saturday, Tanti was in Ahmedabad and attended 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.

Also read | 'Pained by his untimely demise': PM Modi offers condolences to Suzlon founder Tulsi Tanti's family.

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 informed the bourses that its promoters have reconfirmed their participation in the rights issue.

Also read : Suzlon's Tulsi Tanti was an ardent champion of the wind energy sector, always leading from the front.

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 get 5 equity shares of the energy company for every 21 shares held on the record date, based on the information provided by the shareholders.

The rights issue would open on October 11, 2022 and conclude on October 20, 2022.