Inox Wind to become debt-free after Rs 7.40 billion IPO

Inox Wind Limited will become a debt-free company after its Rs 7.40 billion initial share, which is awaiting Securities and Exchange Board of India nod, is over and fund infusion by promoters.

According to the Draft Red Herring Prospectus (DRHP), as of June 2022, the company had a gross debt of Rs 17.18 billion and cash balance of Rs 2.22 billion, and a net debt of Rs 14.95 billion on its books. The company’s promoters had agreed to infuse up to Rs 8 billion by subscribing to non-convertible, non-cumulative participating redeemable preference shares on a private placement basis. The fund will be infused by two promoter group entities – Inox Leasing and Finance Limited which will pump in up to Rs 6 billion, and Inox Wind Energy Limited that will infuse up to Rs 2 billion. The entire money thus raised will be used to retire debt. According to the DRHP, the entire proceeds from the initial public offering (IPO) will also be used to retire debt and post-issue which will be entirely fresh issue of shares, the company will be net debt-free.