Tulsi Tanti's Demise: Suzlon drops 7% in morning trade; recovers soon

Suzlon Energy stock traded volatile on October 3 after the company's one of the key promoters, chairman and managing director Tulsi Tanti passed away due to cardiac arrest on October 1.

The stock opened almost 7% lower at ₹7.46 against its previous close of ₹8 on October 3 but it recovered quickly and jumped 3%. It soon pared gains and traded about half a percent higher. Finally, it closed 1.38% lower at ₹7.89.

Investors feared the proposed rights issue of the company may get delayed due to the passing away of Tanti. However, the company assured us it will continue to follow the schedule for the proposed rights issue.

"The promoters and the promoter group 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 dated 28th September 2022 (“LOF”)," the company said in a BSE filing on October 3.

The stock begins trading ex-rights on October 3.

Suzlon Energy's ₹1,200 crore rights issue is going to open on October 11, 2022, and will close on October 20, 2022. The board of directors of the energy company has fixed the record date for the Suzlon Energy rights issue on October 4, 2022, which means, Suzlon Energy stock will trade ex-rights on October 3.

Under the rights issue, Suzlon will offer up to 240 crore partly paid-up equity Shares amounting to ₹1,200 crore on a rights basis to its eligible shareholders.

The ratio of the rights issue' is 5 rights equity shares for every 21 fully paid-up equity shares held by the eligible equity shareholders on the record date.

The issue is offered at ₹5 per rights equity share (including a premium of ₹3 per rights equity share).