Inox Wind Merger Clears NCLT Hurdle, Paving Way for ₹2,050 Crore Debt Reduction – EQ
In Short : The National Company Law Tribunal has approved the merger of Inox Wind Energy Ltd with Inox Wind Ltd. Shareholders will get 632 IWL shares for every 10 IWEL shares. The merger will reduce Inox Wind’s liabilities by ₹2,050 crore, strengthen its balance sheet, and boost operational efficiency, marking a strategic step in consolidating the group’s wind energy business.
In Detail : The National Company Law Tribunal (NCLT) has given its approval for the merger of Inox Wind Energy Limited (IWEL) with Inox Wind Limited (IWL). This decision marks a significant step toward streamlining the corporate structure of the INOXGFL Group’s wind energy business.
As part of the approved merger plan, shareholders of IWEL will receive 632 equity shares of IWL for every 10 shares they hold in IWEL. This share exchange ratio was recommended by independent valuers and approved by both company boards prior to submission to the NCLT.
The merger is aimed at simplifying the group’s structure and enhancing shareholder value. By consolidating the two entities, the group expects to improve operational and financial efficiencies, creating a more robust and agile company in the competitive wind energy sector.
One of the most impactful outcomes of this merger is the significant reduction in liabilities for Inox Wind. The company expects to bring down its debt by approximately ₹2,050 crore, a move that will substantially strengthen its balance sheet and improve credit metrics.
This reduction in debt comes at a crucial time as the company focuses on expanding its market presence and scaling operations. The financial restructuring will also enable IWL to access capital at better terms and support long-term growth strategies more effectively.
Overall, the merger is seen as a strategic initiative to create a leaner, financially healthier entity capable of driving the INOXGFL Group’s clean energy ambitions forward while delivering enhanced value to stakeholders.
