Shares of Inox Wind Energy surged 14% today, hitting a new 52-week high!

Today shares of Inox Wind Energy hit a new 52-week high at Rs 2150. Yesterday, the scrip closed at Rs 1812.40, today it opened at Rs 1950.05 and closed at Rs 2067.25, up by 14.06%. It has a 52-week low of Rs 442.95, the company has a market capitalisation of around Rs 690 crore.

The wind energy solutions provider announced that its board of directors has authorised the merger of Inox Wind Energy with the company. Various regulatory permissions and compliances are required for the merger. The merger is scheduled to take place on July 1, 2023. According to the proposed merger, Inox Wind will issue 158 equity shares for every 10 equity shares held by Inox Wind Energy shareholders, as well as 158 share warrants with an issue price of Rs 54 each to Inox Wind Energy shareholders for every 10 share warrants with an issue price of Rs 847 held by them.

Inox Wind Energy Limited (IWEL) is involved in the generation and sale of wind energy. It provides services for the Erection, Procurement, and Commissioning (EPC) of wind farms and holds a strategic business interest in renewable energy.

Inox Wind Limited (IWL) is primarily engaged in the manufacturing and sale of Wind Turbine Generators (WTGs). Additionally, it offers EPC, Operations & Maintenance (O&M), and Common Infrastructure Facilities services for WTGs, as well as wind farm development services.

The proposed merger between Inox Wind Energy Limited (IWEL) and Inox Wind Limited (IWL) aims to achieve the following benefits: 

Consolidation of the wind energy business: IWEL is involved in the generation and sale of wind energy and provides services for the EPC of wind farms. The merger would consolidate businesses with similar lines of operation, allowing for the pooling of assets and expertise across the group.

Streamlining group structure and operations: The Scheme of Arrangement simplifies and streamlines the group structure by reducing the number of listed entities. This consolidation enables better synergy of operations through focused efforts, standardization, and simplification of processes. It also facilitates productivity improvements.

Advantages of this merger include: Improved overall operational efficiency and effectiveness of the combined businesses and Reduction in overall operational, administrative, and compliance costs.