New Delhi, (Asian independent) Suzlon Energy has said that Dilip Shanghvi and Associates have terminated the agreement with the promoters of the company.
Dilip Shanghvi and Associates, referred to as the ‘Investor Group’, who had entered into an amended and restated shareholders’ agreement dated February 28, 2020 with the promoters/promoter group of the company and the company, have informed the company and the other shareholders, who are party to the agreement, that the Investor Group has decided to terminate the agreement in accordance with the terms of the agreement, Suzlon said.
There would not be any impact on the operations of the company on account of the termination of the agreement, the company said.
This is to further inform that simultaneously with the termination of the Agreement, Hiten Timbadia, the Investor Group’s nominee director on the Board of the company, has also resigned as Director of the company with effect from September 26, 2023, Suzlon said.
Sun Pharma promoter Dilip Shanghvi’s family members and companies hold 7.4 per cent stake in Suzlon.
Suzlon Group, India’s largest renewable energy solutions provider, also announced on Tuesday that CRISIL has upgraded the ratings of Suzlon Energy Ltd. to ‘CRISIL BBB+/A2’ from ‘CRISIL BBB‐/A3‘ with a Positive Outlook for long‐term and short‐term facilities, reflecting the company’s strengthened financial position, operational excellence and favourable sectoral tailwinds.
The rating upgrade is a result of Suzlon’s successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately Rs 2,000 crore.
The reduction in fund‐based borrowings, steady cash flows from the operations and maintenance (O&M) services business, and improved business profile in the wind turbine segment have contributed to this upgrade.
This two‐notch long-term ratings upgrade and a Positive Outlook of CRISIL ratings largely indicate CRISIL’s expectations of continued achievement given the company’s strong business fundamentals and a favourable market environment for the Indian wind energy sector.
