Inox Wind, Inox Wind Energy merger gets NCLT approval, shares rise

Shares of Inox Wind Energy Ltd and Inox Wind Ltd rose on Wednesday, June 11, after the National Company Law Tribunal (NCLT), Chandigarh Bench, approved the scheme of merger between the two companies.

The merger will see Inox Wind Energy amalgamated into Inox Wind, the company said in an exchange filing. According to the scheme, 632 shares of ₹10 face value each of Inox Wind will be allotted for every 10 shares of Inox Wind Energy as of the record date, which will be declared shortly.

The shares are likely to be credited to Inox Wind Energy shareholders within a period of 1-1.5 months, post regulatory processes and clearances.

Key benefits of Inox Wind – Inox Wind Energy merger

• Inox Wind said that the merger will enhance financial strength. A merged balance sheet will result in a substantial reduction in Inox Wind's liabilities by ₹2,050 crore.
• Combining the operations of both companies will lead to cost savings through economies of scale, improved resource utilisation, elimination of redundant functions and streaming of regulatory compliance.
• The merger will streamline the group's wind business vertical with no holding company structure.
• The merger may lead to stakeholder value enhancement.

Devansh Jain, Executive Director, INOXGFL Group, said, "The merger is a significant achievement in the exciting journey of the INOXGFL Group, and brings closure to the last two years of efforts which our team had invested in this process. It is also a milestone for our consolidated wind business, in which over the same period we have been able to deliver a remarkable operational and financial turnaround, and establish a strong base for exponential growth over the coming years."

"We believe that this merger is beneficial for all stakeholders, including the minority shareholders of IWEL, as well as for IWL, since it results in a leaner and more robust balance sheet for the company," he added.