Inox Wind falls 7% after board approves fund raise via preferential issue

The board approved fund raise of Rs 402 crore through preferential issue of equity shares and convertible warrants to promoter and non-promoters.

Shares of Inox Wind were down 7 per cent to Rs 111, after falling 11 per cent from its intra-day high of Rs 125.35 on the BSE in Wednesday’s intra-day trade. The fall comes after the board approved fund raise aggregating to Rs 402 crore through preferential issue of equity shares and convertible warrants to promoter and non-promoters.

The company plans to issue equity shares at Rs 126 per share and issue unlisted warrants at Rs 10 face value, a premium of Rs 122 per equity share, for each warrant will be converted as per their terms of cash consideration.

“The promoters will infuse Rs 150 crore through preferential issue of equity shares. Sarnena Green Limited, non promoter- foreign company to infuse Rs 152.5 crore through preferential issue of equity shares and convertible warrants. Meanwhile, Lend Lease Company (India) Limited, a non promoter will infuse Rs 100 crore through preferential issue of equity shares and convertible warrants,” the management said in a statement. 

Meanwhile, the company has also approved conversion of 0.01 per cent non-convertible, non-cumulative, participating, redeemable preference shares allotted to promoter group to compulsorily convertible preference shares aggregating at Rs 918.35 crore.

The management believes that the company is well positioned to leverage them as India aims to generate 50 per cent of its energy from non- fossil fuels by 2030, thereby, churning huge potential for the sector. The infusion of funds will act as a strong support towards sustaining significant growth ahead.

On the other hand, India has an installed renewable energy generation capacity of over 150 gigawatts (GW) and aims to reach 500 GW by 2030. Given this, India has been witnessing huge interest in the domestic renewable energy sector from large corporate and global investors.

“We believe this sector has a huge potential and Inox Wind is well positioned to capitalise it. Given the global shift towards renewables with India playing a leading role towards carbon neutrality, we believe this partnership will be fruitful for all stakeholders,” said Chetan, Managing Director at Samena Green.