Inox Wind board approves fund raising of upto Rs800 crore; Stock surges near 3%

1 Sept 2022 , 09:19 AM

Inox Wind Limited informed that the Board of Directors has approved to raise funds up to Rs800 crore by way of issuance of 0.01% Non-Convertible Non-Cumulative Participating Redeemable Preference Shares of face value of Rs10 each of the Company ('NCPRPS'), fully paid up, at par, for cash consideration, on private placement basis, including shareholders' approval and statutory and regulatory approvals, as may be required, to 'Promoter or Promoter Group' entities viz. Inox Leasing and Finance Limited, Promoter Group entity, of up to Rs600 crore and Inox Wind Energy Limited, Promoter Company, of up to Rs200 crore.

The funds raised through the issuance of NCPRPS shall be used inter-alia for repayment of the debt, the company said.

Devansh Jain, Executive Director Inox GFL group commented, “We are thrilled to be a part of India’s renewable energy quest. With the government providing strong impetus to the industry, setting a target of about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, and the increasing demand across end user verticals, the promoters want to hold their position in the wind energy segment and hence have decided to infuse capital in the firm."

The firm recently secured 350 MW orders from NTPC, which is the largest order tendered by a PSU in the recent past. The fund infusion by the promoters will be a shot in the arm for the company and will provide the much-needed impetus for growth. With the fund infusion and cash flow from operations, Inox Wind eyes to become a net debt zero company in the coming future”, said Kailash Tarachandani, CEO of Inox Wind Ltd.

At around 9:18 AM, Inox Wind Ltd is currently trading at Rs114.60 per share up by Rs3.1 or 2.78% from its previous closing of Rs111.50 per share on the BSE.

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