Suzlon Energy shares merger update, gets 'no adverse observation' from BSE, NSE

Shares of Suzlon Energy are in focus this Monday morning after the renewable energy solutions provider received observation letters from both the National Stock Exchange (NSE) and BSE, dated July 3, 2025. The letters, issued under Regulation 37 of the Listing Regulations, contained ‘no adverse observations’. The approval paves the way for the merger of Suzlon Energy's wholly-owned subsidiary, Suzlon Global Services Limited, with the parent company.

Suzlon Global Services Limited is an unlisted public limited company incorporated under the Companies Act, 1956. It is a wholly owned subsidiary of Suzlon Energy, and it is engaged in the business of operation and maintenance of the WTG (OMS) and other businesses. 

Suzlon Global was originally incorporated as a private limited company on May 25, 2004, in the name and style as ‘Suzlon Structures Private Limited’ under the provisions of the Companies Act, 1956. 

The company was later named Suzlon Structures Private Limited. Following a special resolution passed by shareholders at the Fourth Annual General Meeting on July 30, 2008, it was converted into a public limited company and renamed Suzlon Structures Limited. A fresh certificate of incorporation reflecting this change was issued by the Registrar of Companies, Gujarat, on September 4, 2008.

Subsequently, as part of a Scheme of Amalgamation approved in October 2016, the company’s name was changed to Suzlon Global Services Limited. The Registrar of Companies, Gujarat, issued a fresh certificate of incorporation reflecting this new name on January 23, 2017.

The proposed merger aims to create a stronger and more competitive entity, better positioned to navigate the complexities of both domestic and global renewable energy markets.

By consolidating the businesses of the two companies, the amalgamation is expected to drive focused growth, improve operational efficiencies, and unlock synergies between the Wind Turbine Generator (WTG) and Operations & Maintenance Services (OMS) segments. Additionally, the streamlined corporate holding structure is set to enhance the agility of the merged entity’s business ecosystem.

Besides, some of the Suzlon Energy customers are inclined more towards contracts with single entity, demonstrating a clear preference for dealing with a single entity for both WTG delivery and OMS services. For some customers such as PSU customers, it is a mandatory tender condition to participate for both WTG delivery and OMS services from single entity. 

To recall Suzlon Energy in October 2024  had informed stock exchanges regarding the decision of the its board of directors approving the proposed Scheme of Arrangement by and among the company, its shareholders and creditors under Sections 230 and 231 read with Section 52 and Section 66 and other applicable provisions of the Companies Act, 2013. The scheme was subject to the approval of the stock exchanges, and also Securities and Exchange Board of India (SEBI), shareholders, creditors of the company, National Company Law Tribunal, Ahmedabad Bench (NCLT) and other statutory and regulatory approvals, as may be required.