They did clarify that it will be infused back to IWL.
ef7faa40-3f75-49ff-899c-7898dea6bd55.pdf (871.4 KB)
" Inox Wind Energy Limited raises ~ Rs. 900 Crore through Sale of Equity Shares of Inox Wind Limited; significant step towards completely deleveraging external debt in IWL
⢠Inox Wind Energy Limited (IWEL), the promoter of Inox Wind (IWL), successfully raised ~ Rs. 900 Crores through sale of equity shares of Inox Wind via block deals on the stock exchanges
⢠Transaction witnessed strong participation across marquee Institutional Investors"
The funds raised are proposed to be infused into Inox Wind Ltd to pare down Inox Windâs debt and augment the working capital needs of the company thereby strengthening its balance sheet further.
Should we assume that this merger is not happening? Inox wind issued a 3:1 bonus while the amalgamation scheme was ongoing and stayed mum on how it would affect the proposed swap ratio of 158:10. Wouldnât promoters take advantage of the arbitrage instead of sale of equity shares via block deals?
I donât see a reason why merger ratio wouldnât change proportionally. Sure a communication would have helped but I wouldnât worry much about it.
The merger ratio will be adjusted by taking into account, the bonus shares. Please see the attached communication. The revised ratio is 632 shares of Inox Wind for 10 shares of Inox Wind energy limited.
Inox wind bonus announcement.pdf (821.5 KB)
There is an arbitrage of around 33% at Cmp between Inox wind and Iwel. Wondering why would someone buy Inox wind at cmp rather than Iwel. Is it market thinks that merger might not go through Or its a futuristic event and hence not certain which is leading retail, institutions to still buy Inox wind and NOT Iwel
Well the aelrbitage has ranged from 30% - 60% so definitely on the lower end now. I myself have asked this question many times. I think one thing is that liquidity in IWEL is much lower, so if there is an adverse event, big players wonât be able to exit on account of lower circuits. Other thing is that merger is still maybe 2 quarters away at least so may take time. There is no question on merger itself from companyâs pov and the nclt process is continuing.
Have the given any timeline for when the merger will happen?
Last i heard, mgmt said they should do it by March '24 but we are way past that. Are they just waiting for the nod to go ahead or is it some other hiccup?
The long-term aim is make Inox GFL renewable arm a $10Billion company(i think it might includes unlisted companies also) as they see huge order visibility and sector tailwinds. Devansh Jain
Share holders approval was done on 1st of June-2024. secured creditors, debenture holders and unsecured creditors approvals were also done. It looks like merger is not very far.