Inox Wind Energy Raises Rs 800 Crore After Stake Sale In Inox Wind
The funds will be infused into Inox Wind and utilised to pare down Inox Wind's external debt.
Inox Wind Energy Ltd. has raised around Rs 800 crore through sale of equity shares in unit Inox Wind Ltd., with an aim to pare down debt.
The transaction was executed via block deals on the stock exchanges and witnessed participation by several marquee, long-only domestic and foreign institutional investors, according to an exchange filing on Tuesday.
The funds will be infused into Inox Wind and utilised to pare down Inox Wind's external debt, strengthening its balance sheet, the company said.
Inox Wind Energy is the promoter of Inox Wind.
Following the deal, Inox Wind has ceased to be a subsidiary of the company, whose shareholding is now down to 38.43% from 50.20%, the parent firm said.
"With today’s transaction, we have taken a large step towards our goal of achieving a net debt-free status for Inox Wind," said Devansh Jain, executive director of INOXGFL Group.
He said the company would scale up operations in its next phase of growth in the renewable energy sector with robust financial position and strong execution capabilities.
Inox Wind Energy sold 3.83 crore shares, or 11.76%, stake in Inox Wind at Rs 210.23 apiece, according to data available with the BSE.
The buyers include U.S.-based Small Cap World Fund Inc., which bought 74.5 lakh shares (2.28%). East Bridge Capital Master Fund which bought 47.8 lakh shares (1.46%), BNP Paribas arbitrage which bought 23.9 lakh shares (0.73%) and ICICI Prudential Mutual Fund which bought 24 lakh shares (0.73%).
In August, promoter entities raised Rs 500 crore after stake sale — which included an offload of 4.49% by Inox Wind Energy and 2.87% by Devansh Trademart — to repay debt.
Shares of Inox Wind closed 3.04% lower at Rs 216.80 apiece on the BSE before the announcement, while Inox Wind Energy advanced 3.10% to close at Rs 2,878.55 apiece, as compared with a 0.37% decline in the benchmark Sensex.