Inox Wind Director: Merger deal with holding firm benefits minority shareholders

Inox Wind subsidiary to sell 100% stake in Gujarat wind farm

Merger Deal Benefits Minority Shareholders, Says Inox Wind Director

In a recent interview with CNBC-TV18, Devansh Jain, the wholetime director of Inox Wind, expressed that the merger agreement with Inox Wind Energy is equitable and advantageous for all minority shareholders.

Yesterday, Inox Wind Energy shares witnessed a significant surge of more than 13 percent as the board approved the merger with Inox Wind, pending approval from shareholders and creditors of both companies. Under the merger terms, Inox Wind shareholders will receive 158 shares of Inox Wind, valued at Rs 10 each, for every share they currently hold in Inox Wind Energy. Additionally, they will also receive 158 share warrants of Inox Wind at an issue price of Rs 54 each in exchange for 10 share warrants of IWEL priced at Rs 847.

Inox Wind views this merger as a means to streamline and simplify the structure of the Inox Wind Group, ensuring consolidation of wind energy business operations under a single entity. Once the warrants are converted, Inox Wind’s ownership in Inox Green will increase to 61 percent.

Jain emphasized that the wind sector is experiencing a turnaround after a challenging period of 4-5 years, and Inox Wind remains committed to its wind turbine manufacturing business. He further highlighted the growing interest in renewable tenders from independent power producers (IPPs) and private entities.

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Consolidating operations is expected to enhance efficiency and productivity, according to the company. In the quarter ending in March, Inox Wind Energy reported a net profit of Rs 111.88 crore, marking an 11.6 percent increase compared to the same period last year. Net sales also showed substantial growth, rising by 35.65 percent to Rs 188.2 crore.

However, the shares of Inox Wind concluded the day 3.7 percent lower at Rs 140.45.

About Inox Wind:

Inox Wind is a comprehensive participant in the wind energy industry, operating three advanced manufacturing facilities located in Gujarat, Himachal Pradesh, and Madhya Pradesh. These plants collectively possess a manufacturing capacity of 1,600 MW.

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