Inox GFL Group raises around Rs 1,500 cr across entities to pare down debt

Inox GFL Group on Thursday said that it has raised around Rs 1,500 crore across its entities in the last fortnight.

The Inox GFL Group, recently embarked on a journey towards deleveraging across all its operating entities. Towards this goal the Group has been on a significant fundraising spree, raising almost Rs 1,500 crore across its entities in the last fortnight, a company statement said.

This funding has been used to pare down debt substantially across its operating companies and consequently the interest outgo will reduce substantially, it added.

Around Rs 740 crore was recently raised through an IPO (initial public offering) of Inox Green Energy Services Ltd (IGESL) and the funds raised have been majorly utilized towards debt repayment, it stated.

Further the promoters have recently raised Rs 720 crore through sale of shares of Gujarat Fluorochemicals Ltd (GFL). The sale proceeds, net of expenses and taxes, have been infused in Inox Wind Ltd (IWL). In turn IWL has repaid the advances it took from GFL to set up wind energy capacities.

The GFL had given advances to IWL for setting up the wind power capacity which is being refunded by IWL to GFL owing to the current policies limiting captive usage of Wind Power.

All the operating entities of the Inox GFL Group are now firmly placed and making conscious efforts to further reduce their debt burden, interest outflow and consequently enhance profitability significantly.

The Inox GFL Group endeavors to become a zero net debt Group going forward, it stated.

"We at Inox GFL Group had laid out a goal to deleverage across the Group and put in place a clear roadmap to achieve this. The recent fund raising activity has been a very significant step in that direction," Devansh Jain, Executive Director Inox GFL Group said.

The INOX GFL Group is primarily focused on two business verticals - chemicals and renewable energy, comprising Fluoropolymers, Speciality Chemicals, Wind Energy, and Renewables.

It operates in these segments primarily through four publicly listed companies, namely GFL, Inox Wind Energy Ltd, Inox Wind Ltd and IGESL and has a combined market capitalization of USD six billion.