Suzlon rallies over 18% as Dilip Shanghvi invests Rs 1800 cr, triggers open offer

MUMBAI: Shares of Suzlon Energy surged as much as 18.28 per cent in trade on Monday, after promoter of Sun Pharmaceuticals Dilip Shanghvi Family and Associates invested Rs 1800 crore in the wind energy major for a 23 percent stake.

At 10:00 a.m.; the stock was trading at Rs 21.70, up 13.32 per cent, on the BSE. It surged 18.28 per cent to touch intraday high of Rs 22.65 in trade today.

The stake buy has also triggered an open offer to buy 1,57,64,38,113 equity shares of Rs 2 each, at Rs 18 per share.

“While we believe Suzlon has the potential to emerge as a global leader in the renewable energy space from India, it will take substantial and sustained effort on part of the management team to achieve a significant operating performance improvement.,” Dilip Shanghvi said.

The funds will be used by Suzlon to reduce debt on books. The company plans to build wind-power equipment factories as it seeks to recover from India’s biggest convertible-bond default two and a half years ago.

“Suzlon is poised to enter FY16 with a strong liquidity position to tap the opportunity available in India as well as key growth markets like USA, China, Brazil, South Africa, Turkey and Mexico,” said Tulsi Tanti, Chairman – Suzlon Group