Suzlon jumps 20% as Shanghvi checks in

MUMBAI: Suzlon shares jumped as much as 20%, adding Rs 1,300 crore to its market capitalization on Monday, after pharma baron Dilip Shanghvi bought a 23% stake in the Tulsi Tanti-promoted firm for Rs 1,800 crore, triggering an open offer.
India’s second richest man after Mukesh Ambani agreed to pay Rs 1,800 crore through Dilip Shanghvi Family and Associates (DSA) for 100 crore new shares in Suzlon, issued by way of a preferential allotment.Besides, Shanghvi and family also announced an open offer to acquire 26% stake in Suzlon at Rs 18 per share — aggregating to Rs 2,837 crore — to become a co-promoter.
However, Tulsi Tanti will retain the management control by virtue of pooling arrangement for voting while Shanghvi, who made Sun Pharma — a first-generation company — into India’s largest drug maker with an m-cap of $31.4 billion, will remain a strategic investor.
Suzlon shares closed up 20% at Rs 23, or at a 27% premium to the open offer of Rs 18 per share as traders seemed enthused due to Shanghvi’s ownership.