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Wind energy solutions provider Inox Wind will become a debt-free company after its Rs 740-crore initial share, which is awaiting Sebi nod, is over and fund infusion by promoters, according to its regulatory filing.
According to the Draft Red Herring Prospectus (DRHP) filed with the market regulator, as of June 2022, the company had a gross debt of Rs 1,717.8 crore and cash balance of Rs 222 crore, and a net debt of Rs 1,494.8 crore on its books.
Last week, the company said its promoters had agreed to infuse up to Rs 800 crore 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 & Finance which will pump in up to Rs 600 crore, and Inox Wind Energy that will infuse up to Rs 200 crore.
The entire money thus raised will be used to retire debt, a statement from the company said on August 30.
According to the DRHP, the entire proceeds from the IPO (Initial Public Offering) 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.
The company will also be divesting its stake in the Rs 350-crore SPV before the IPO, it said, adding net proceeds from the sale will be Rs 100 crore. That apart, it will get a little over Rs 200 crore from converting warrants issued earlier.
With these fund raising and also improved operations having won orders worth 350 mw from NTPC in the recent past, the company is on its way to be a net-debt zero company, it said.
Its borrowings include Rs 300 crore for the Nani Virani project which is being currently developed by Inox Wind. It also has received Rs 850 crore in advance payments from its key customer, which is a group company.
Meanwhile, Inox Wind said it will seek shareholders’ approval to raise up to Rs 200 crore via issuance of 20 crore preference shares to its holding and promoter firm Inox Leasing and Finance for cash in the coming Annual General Meeting (AGM) on September 28.
The company’s board at its meeting held on 30th August, 2022 approved the issuance of up to 20 crore 0.01 per cent non-convertible, non-cumulative, participating, redeemable preference shares of the face value of Rs 10 each for an aggregate value not exceeding Rs 200 crore to Inox Leasing and Finance Ltd, said the company’s notice for the AGM.
The notice showed the proposal to raise Rs 200 crore is listed on the agenda of the AGM.
It also explained that to accommodate the issuance of preference shares, the company proposes to increase its authorised share capital from the existing Rs 110,11,00,000 to Rs 310,11,00,000.
The increase in authorised share capital will require consequential amendment of the share capital clause of the memorandum of association of the company, it stated. The company will also seek shareholders’ nod to shift its registered office from Gujarat to Himachal Pradesh.