Inox Wind Set To Soar as Promoter Infuses ₹900 Cr, Becoming Debt-Free

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Inox Wind Limited (IWL), a major player in India’s wind energy sector, has made a significant announcement that is set to reshape its financial future. The company is on track to become a net debt-free entity thanks to a massive ₹900 crore infusion from its promoter, Inox Wind Energy Limited (IWEL).

The capital infusion, which took place on May 28, 2024, was generated through the sale of IWL’s equity shares in block deals across various stock exchanges. These funds are specifically designated for the complete repayment of IWL’s external term debt, paving the way for the company to eliminate its debt burden and operate without any external liabilities, except for promoter debt.

CEO Kailash Tarachandani expressed great optimism about the company’s trajectory following this crucial development. He highlighted that the financial boost from the promoter will not only strengthen Inox Wind’s balance sheet but will also catalyze its growth. Tarachandani stated, “This fund infusion will help us become a net debt-free company, strengthening our balance sheet and helping accelerate our growth. We expect substantial savings in interest expenses going ahead, aiding our profitability further.”

Known for its presence in the renewable energy sector, IWL, a part of the INOXGFL Group, primarily focuses on wind energy solutions, coupled with manufacturing key components of wind turbines using cutting-edge technology. This move solidifies Inox Wind’s position in the market and reflects the company’s commitment to financial stability, growth, and innovation.

The industry significance of Inox Wind’s transition to a debt-free status is underscored by the recent achievement of another major player in the sector, Suzlon Energy, which also became net debt-free by the end of March 2024, showcasing a robust financial performance.

In conclusion, with the injection of ₹900 crore into Inox Wind and the strategic move towards becoming debt-free, the company is poised to chart a new course for its operations, bolstered by financial stability, growth opportunities, and enhanced profitability. This development heralds a promising chapter for Inox Wind and underscores its commitment to sustainability and market leadership in India’s wind energy landscape.