Inox Wind Secures Funding for Debt Reduction and Growth Initiatives

Inox Wind Limited (IWL), a leading Indian wind energy solutions provider, announced a strategic move to strengthen its financial position and fuel future growth. This decision follows a board meeting held on May 31, 2024, where the Board of Directors approved the raising of funds for the company.

Capital Infusion via Share Issuance

Subject to shareholder and regulatory approvals, the company plans to utilise the proceeds from a recent block deal on May 28, 2024. Inox Wind Energy Limited (IWEL), IWL’s promoter, participated in this block deal, divesting a portion of its IWL shares. The funds generated from this transaction will be reinvested in IWL by issuing 0.01% Non-Convertible Non-Cumulative Participating Redeemable Preference Shares (NCPRPS) to IWEL.

Strategic Use of Funds

The capital infusion garnered through the NCPRPS issuance will be strategically deployed to achieve two critical objectives. First, IWL plans to utilise a significant portion of the funds to completely eliminate its external debt, thereby streamlining its financial structure and enhancing its overall financial health.

Second, the remaining funds will be allocated to augment IWL’s working capital needs. This will provide the company with the necessary resources to pursue future growth initiatives and capitalise on emerging opportunities within the Indian wind energy market.

Strengthening the Balance Sheet for Sustainable Growth

By securing this strategic funding, IWL demonstrates its commitment to long-term financial stability and sustainable growth. Reducing external debt will significantly improve IWL’s financial flexibility and risk profile. Additionally, the bolstered working capital will empower IWL to invest in operational efficiencies, explore new business opportunities, and solidify its position as a leader in the Indian wind energy sector.

“We are pleased to announce that post the completion of our fundraising exercise at IWEL earlier this week, where we successfully raised ~₹900 crore from marquee investors, IWL has received the board approval for the infusion of the said funds into IWL. This is another milestone event for the INOXGFL Group in its remarkable journey over the last few years. After the fund infusion, IWL will become net debt-free, excluding promoter debt,” said Mr Devansh Jain, Executive Director of INOXGFL Group.

He further added, “We thank all our investors who have shown their faith in the growth story of IWL. INOXGFL Group’s commitment and contribution to India’s sustainable growth story will only grow stronger from here.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.