NCLT Approves Inox Wind Energy Merger With Inox Wind; To Reduce Liabilities By ₹2,050 Cr
By Shishta Dutta | Published at: Jun 11, 2025 09:36 AM IST
Noida, June 11, 2025: Inox Wind Energy Limited (BSE: 543297, NSE: IWEL) has announced that it has officially secured approval from the Hon’ble National Company Law Tribunal (NCLT), Chandigarh Bench, for its merger with Inox Wind Limited (IWL). The merger of Inox Wind Energy with Inox Wind is aimed at enhancing its operations, improving financial health, and streamlining the INOXGFL Group’s wind energy vertical. It will ensure a more robust balance sheet and allow the company to drastically reduce its liabilities by approximately ₹2,050 crore.
The approval was formally provided by the NCLT Chandigarh Bench on June 10, 2025, and is expected to strengthen Inox Group’s position in the renewable energy market. Under the terms of the merger, IWEL shareholders will receive 632 equity shares of IWL for every 10 equity shares they currently hold in IWEL. This share transition is expected to be completed within 1 to 1.5 months, once all necessary regulatory approvals have been obtained. The share exchange ratio has been set to ensure a fair valuation and equitable treatment for all shareholders.
Merger Highlights
| Metric | Before Merger | After Merger |
|---|---|---|
| Holding Structure | IWEL held a stake in IWL | IWEL merged; promoters hold IWL directly |
| Liabilities of IWL | Higher by ~₹2,050 crore | Reduced by ~₹2,050 crore |
| Shareholding | Indirect through IWEL | Direct shareholding by promoters |
Share Exchange Ratio
| Parameter | Details |
|---|---|
| Exchange Ratio | 632 equity shares of IWL for every 10 shares of IWEL |
| Face Value per Share | ₹10 |
| Credit Timeline | 1–1.5 months (post regulatory clearance) |
| Record Date | To be announced |
The Strategic Rationale Behind The Merger
The INOXGFL Group highlighted several key benefits from the transaction:
- Enhanced Financial Strength: IWL’s liabilities are expected to decrease by approximately ₹2,050 crore, thereby fortifying its balance sheet.
- Operational Efficiencies: Consolidation brings scale, streamlines regulatory overheads, and eliminates redundancies.
- Simplified Ownership: The merger eliminates the holding company layer, with promoters owning IWL directly.
- Value Creation Potential: The unified structure is expected to drive improved returns for stakeholders.
What Did The Company Management Say?
Devansh Jain, Executive Director of INOXGFL Group, stated:
“The merger is a significant achievement in our journey, marking the culmination of two years of dedicated effort. It not only strengthens IWL’s financial standing but also positions us for exponential growth in the wind energy sector. We believe it delivers value for all stakeholders, including IWEL’s minority shareholders.”
Share Price Effect
The shares of Inox Wind Limited closed at ₹186.68, up by 1.32% or ₹2.44, at the end of the trading session on June 10th. On the other hand, the shares of Inox Wind Energy Limited closed at ₹11,300, up by 0.61% or ₹68.00.
About the INOXGFL Group
With a 90-year legacy, the INOXGFL Group is a diversified conglomerate with interests in fluorochemicals, battery materials, wind and solar energy manufacturing, and renewable power generation. It operates four listed entities: Gujarat Fluorochemicals Ltd., Inox Wind Ltd., Inox Green Energy Services Ltd., and Inox Wind Energy Ltd. The group commands a market capitalisation of approximately USD 11 billion.
The merger aligns with the Government of India’s green energy mission and positions the group to capitalise on upcoming opportunities in the renewable energy sector.
REF: https://nsearchives.nseindia.com/corporate/IWEL_11062025081703_4IWEL_FinalOrder_Reg_30PressRelease.pdf
Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.
If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.
Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations
