Shares of Wind energy solutions provider Inox Wind Limited and its subsidiary Inox Green Energy Services Limited, a wind power operations and maintenance service provider, rose on Wednesday after the Inox GFL Group said it had reduced its debt across wind businesses.
Inox Wind and Inox Green Energy, as part of the strategic initiative to deleverage their respective balance sheets, have recently paid Rs 250 crore and Rs 161 crore (aggregating to Rs 411 crore) towards reducing their debt, the companies said in an exchange filing.
Following the debt reduction announcement, Inox Green Energy was trading more than three percent higher from its previous on BSE, while Inox Wind was up over six percent at 12 pm.
"Consequently, the Corporate Guarantees given by Gujarat Fluorochemicals Limited have also been reduced to that extent. Both companies are in the process of further
reducing their debt. Inox GFL Group's stated near-term goal is to deleverage all its operating entities, and this repayment is a significant step towards achieving this goal," they added.
Inox Wind Ltd is a leading wind energy solutions provider servicing IPPs, utilities, PSUs and corporate investors. It is a fully integrated player in the wind energy market with three state-of-the-art manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh. Its manufacturing capacity stands at 1,600 MW per annum.
The development comes days after shares of Inox Green Energy Services made a tepid market debut last Wednesday. The stock listed at Rs 60.50, a fall of 6.92 percent from the issue price on the BSE. During the day, it tumbled 10 percent to Rs 58.50 and ended at Rs 59.10, a decline of 9 percent. The IPO had a fresh issue of up to Rs 370 crore and an offer-for-sale of up to Rs 370 crore. The price range for the IPO was Rs 61-65 a share.
The company intends to utilise the IPO proceeds to repay or pre-pay, in whole or part, certain borrowings, including redeeming Secured Non-Convertible Debentures (NCDs) in full and for general corporate purposes. The amount utilised for general corporate purposes will not exceed 25 percent of gross proceeds.
