Dilip Sanghvi is picking up a 23% stake in wind turbine manufacturer Suzlon Energy Ltd for about $290 million. 

A sum of ₹1,800 crore would be channelled into debt ridden Suzlon, through Dilip Sanghvi Family and Associates (DSA) with 1 billion new shares of Suzlon being issued by way of preferential allotment, reported PTI

A view of power generating wind turbines at Suzlon wind farm in Surajbari village, about 275 km (171 miles) west of the western Indian city of AhmedabadReuters

Suzlon and Sanghvi's investment firm will co-develop a 450 megawatt wind farm, said the company statement.

Suzlon's Troubles

Suzlon, led by Tulsi Tanti has been saddled with severe debt as its plans and investments ran aground in the face of the 2007-09 global recession, which saw investments in alternative energy fall, leading to a depressed wind turbine market.

Suzlon had to restructure its outstanding debt of $1.8 billion, after defaulting on $200 million convertible bond redemption in 2012.

Suzlon has seen its liquidity dry up, which the current investment would revive. The Tanti-led company has said it would use the funds to tap into business opportunities in India and in other major global markets.

In January, Suzlon sold its German unit Senvion SE to Centerbridge Partners, a buyout firm, for a sum of $1 billion in an all-cash deal, as it tries to pare its Rupee debts.

Dilip Sanghvi

Sanghvi is India's second richest firm, who's Sun Pharma recently acquired Ranbaxy Laboratories Limited in an all-stock deal worth $3.2 billion. The combined entity is currently the largest pharmaceutical organisation in India.

Suzlon shares have risen by 15% on the back of media reports indicating Sanghvi's interest in the company, though at a personal capacity. 

Suzlon shares closed Friday at 19.10, down by 0.10 or 0.52%.

Indian Alternative Energy Market

With the renewed focus on India gaining a significant part of its energy through renewable sources, and Prime Minister Narendra Modi's 'Make in India' programme, Tanti's wind energy would find more takers, as the business climate improves and the cost of funds go down.

Sanghvi could also use the wind power generated to run his plants on a captive basis.