Promoters Infuse ₹6.2 Billion to Help Inox Wind Cut Debt
Inox Wind and its subsidiary repaid ₹4.1 billion in debts in November
December 8, 2022
The promoters of India-based wind energy solutions provider Inox Wind have infused ₹6.2 billion (~$75.34 million) into the company to clear its debts, the company said in a BSE filing.
The company’s Board had approved a proposal to raise up to ₹8 billion (~$97.2 million) funds in August this year by issuing 0.01% non-convertible non-cumulative participating redeemable preference shares on a private placement basis to the promoters’ group.
The company said that it used the funds to clear the advances it received from its parent company Gujarat Fluorochemicals Limited (GFL), to set up wind power capacity.
CEO of Inox Wind, Kailash Tarachandani, said, “The fund infusion of ₹6.2 billion by promoters along with ₹7.4 billion (~$89.9 million) recently raised through the initial public offering of Inox Wind’s subsidiary Inox Green Energy Services Limited, will help the company pare down its consolidated interest-bearing liabilities substantially and help improve the profitability of both the operating companies significantly.”
“The turnaround in the wind sector led by the government’s initiatives to provide impetus to the sector will augur well in accelerating the company’s growth,” Tarachandani added.
Further, he said that the fund infusion by the promoters signals a strong conviction and faith that the promoters have in the company, which is equally motivated to deliver on the trust and confidence.
Last month, Inox Wind and its subsidiary Inox Green Energy Services repaid loans worth ₹1.61 billion (~$19.56 million) and ₹2.5 billion (~$30.37 million), respectively, as part of a strategic initiative to deleverage the balance sheets. The company cleared the debts to reduce the corporate guarantees given by GFL.
In a bourse filing, the company had stated that both companies were in the process of reducing their debts, with Inox’s near-term goal being to deleverage all its operating entities.
In August this year, Gujarat-based power company Torrent Power acquired 100% of Wind Two Renergy from Inox’s subsidiary Inox Green Energy Services for ₹325.1 million (~$3.95 million), representing 100% of the paid-up capital of Wind Two Renergy.