Inox Wind board approves preferential issue of Rs 400 cr to reduce debt

Inox Wind stock is buzzing in trade as the company’s board approved preferential allotment of Rs 402 crore. The promoters – Inox Leasing & Finance will raise Rs 150 crore equity and the balance will be raised from non-promoters.

Devansh Jain, Whole-time Director of Inox Wind in an interview to CNBC-TV18 said the company plans to use the funds for debt reduction.

“We have raised these funds for two primary purposes. One, to deleverage the balance sheet and two, to provide enough capital and cushion to the business to ramp up operations given that the wind sector is now moving to a high growth phase.”

He said they are looking at making the company debt free in next few months and expect to be profitable in FY23.

“With the fund raise that we have announced today as well as potential IPO in the near future, our larger goal is to make the entire wind energy business a debt free entity over the next couple of months. Also with COVID, sectoral headwinds behind us, we are seeing very strong signs of the sector coming back with strong order book. So we expect to be profitable in FY23.”