Tulsi Tanti death: Suzlon needs a lot of wind to keep going
Tanti, who was driven by ambition, leaves behind a company that needs to do several things right
- Oct 2, 2022,
- Updated Oct 2, 2022 9:57 AM IST
At a price of Rs 510 per share, Suzlon's public issue in 2005 was initially met with apprehension. Wind energy was a new sector and the company's promoter, Tulsi Tanti was not a very familiar name.
Helped by a buoyant market, the issue was oversubscribed 15x. Through that period, Tanti was all over the media espousing the cause of his new-age business, as he spoke of the potential and it being the inevitable future.
The government's accelerated depreciation benefit was a huge incentive and investors happily bought the Suzlon story. If the company's name sounded a little odd, it was a combination of sooj booj (a phrase in Hindi referring to the ability to judge a situation well) and "loan".
Over the last decade, Suzlon went through four rounds of loan restructuring -- in 2010, 2012, 2016 and as recently as 2020. Dilip Shanghvi of Sun Pharma's acquired a stake in Suzlon, but challenges remained. In June this year, Suzlon said it had completed its debt restructuring notwithstanding the time taken and haircut to the lenders.
Though Suzlon is now in the black, its stock prices languish. With Tanti's passing, the future of the company is a little unclear. A rights issue opens in a few days and that will be closely watched.
Also read: Suzlon Energy founder Tulsi Tanti passes away due to cardiac arrest
At a price of Rs 510 per share, Suzlon's public issue in 2005 was initially met with apprehension. Wind energy was a new sector and the company's promoter, Tulsi Tanti was not a very familiar name.
Helped by a buoyant market, the issue was oversubscribed 15x. Through that period, Tanti was all over the media espousing the cause of his new-age business, as he spoke of the potential and it being the inevitable future.
The government's accelerated depreciation benefit was a huge incentive and investors happily bought the Suzlon story. If the company's name sounded a little odd, it was a combination of sooj booj (a phrase in Hindi referring to the ability to judge a situation well) and "loan".
Over the last decade, Suzlon went through four rounds of loan restructuring -- in 2010, 2012, 2016 and as recently as 2020. Dilip Shanghvi of Sun Pharma's acquired a stake in Suzlon, but challenges remained. In June this year, Suzlon said it had completed its debt restructuring notwithstanding the time taken and haircut to the lenders.
Though Suzlon is now in the black, its stock prices languish. With Tanti's passing, the future of the company is a little unclear. A rights issue opens in a few days and that will be closely watched.
Also read: Suzlon Energy founder Tulsi Tanti passes away due to cardiac arrest