Gujarat Fluorochemicals surges 9% on heavy volumes

Inox Group agreed to sell its operating wind farms to Leap Green Energy for an undisclosed price.

Gujarat Flurochemicals has surged 9% to Rs 577 on BSE on the back of heavy volumes after the company said Inox Group has agreed to sell its operating wind farms to Leap Green Energy for an undisclosed price.

“Inox Renewables, a wholly owned subsidiary of Gujarat Fluorochemicals and Inox Renewables (Jaisalmer), a wholly-owned subsidiary of IRL, both a part of the Inox Group, entered into definitive agreements for the sale of substainally all of their operating wind farms to Leap Green Energy Private Limited and its subsidiaries, on a slump sale basis, for an undisclosed price,” Gujarat Flurochemicals said in a press release.

Commenting on the transaction, Deepak Asher, director and group head (corporate finance) of the Inox Group of companies, said “Inox Group has decided to exit the wind farm business to focus on its core businesses, including that of wind turbine manufacturing.”

“This transaction will decrease the leverage of Gujarat Flurochemicals at a consolidated level, by reducing debt of around Rs 800 crore that was attributable to the wind farming business, and free up management time to focus on our core businesses,” Asher said.

At 02:05 pm; the stock was up 7% at Rs 564 on BSE as compared to 0.29% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than seven-fold with a combined 642,904 shares changed hands on the BSE and NSE so far.