Dilip Shanghvi & Associates terminate pact with Suzlon Group

Suzlon group said that there would be no financial implication on the company’s operation owing to Dilip Shaghvi’s disassociation and the CRISIL has upgraded Suzlon Energy Ltd’s rating to BBB-/A3

Dilip Shanghvi Suzlon

New Delhi: Dilip Shanghvi and Associates, who have entered into an agreement with Suzlon Group as ‘Investor Group’, have terminated the agreement with promoters of the company.

Dilip Shanghvi, promoter of Sun Pharma, and Associates had entered into an amended and restated shareholders’ agreement dated February 28, 2020 with the promoters/promoter group of Suzlon group, 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.

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There would not be any impact on the operations of the company on account of the termination of the agreement, Sozlone officials said, adding that Hiten Timbadia, the Investor Group’s nominee director on the board of the Suzlone group has also resigned as Director of the company with effect from September 26, 2023.

Dilip Shanghvi and Associates hold 7.4% stake in Suzlon Group, India’s largest renewable energy solutions provider. The company 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.

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The upgrade in rating, officials said, was attributed to Suzlon’s successful reduction of debt by repaying the entire term debt through the proceeds of a qualified institutional placement (QIP) of approximately ₹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.

Clarifying further, Suzlon officials said that the 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.

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