Suzlon’s share price slumped over 3% in early trade on Wednesday hitting an intraday low of ₹25.05.
What Happened: The slump today comes as the company informed that Dilip Shanghvi and Associates (the "Investor Group") who had entered into an Amended and Restated Shareholders' Agreement dated 28th February 2020 with the company’s promoters have decided to terminate the agreement.
The company also informed that the investor group's nominee director on the board of the company, Hiten Timbadia has also resigned as director of the company with effect from September 26, 2023.
See Also: Digikore Studios IPO Oversubscribed By 76 Times, Led By Retail Investors
One of India’s richest people, Shanghvi in a statement said, “We signed a mutual agreement with Suzlon and its promoters in February 2015, making investments to help the company capitalize on the growing opportunities in the renewable energy sector.”
He added that while they would continue as investors in the company, they have decided to terminate the formal shareholder's agreement signed originally in 2015. The promoter of Sun Pharma had acquired a 23% stake in the energy giant for ₹1,800 crore.
As per the latest shareholding data, Dilip Shanghvi and Associates collectively hold at least a 7.4% stake in Suzlon.
Price Action: Suzlon’s share price was down 1.34% to trade at ₹25.65 in early trade on Wednesday.
Read Next: Why This Tata Stock Is Climbing Today
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.