New Delhi: The Chandigarh bench of the National Company Law Tribunal (NCLT) has approved the merger of Inox Wind Energy Ltd and Inox Wind Ltd, a decision that will streamline the wind business vertical of the INOXGFL Group and improve overall operational efficiencies. Following the NCLT order on Tuesday, Inox Wind Energy Ltd will be amalgamated into Inox Wind Ltd (IWL), INOXGFL Group said in a statement on Wednesday.
The merger simplifies and streamlines the wind business vertical of the INOXGFL Group, improving overall operational efficiencies, it said. The merger, or the "scheme of arrangement", will also reduce IWL's liabilities by Rs 2,050 crore, strengthening its balance sheet. The overall consolidation of businesses, financial, operational and other synergies may result in enhancing value for various stakeholders of the companies.
As a result of this merger, 632 equity shares of face value of Rs 10 each of IWL will be allotted for every 10 equity shares of face value of Rs 10 each of IWEL as on the record date, which will be determined shortly, as per the statement.
INOXGFL Group promoters will now have direct holding in Inox Wind. The shares are expected to be credited to shareholders of IWEL within 1-1.5 months, subject to regulatory processes and clearances. INOXGFL Group Executive Director Devansh Jain said, "The merger is a significant achievement in the exciting journey of the INOXGFL Group, and brings closure to the last two years of efforts which our team had invested in this process."
The merger is beneficial for all stakeholders, including the minority shareholders of IWEL, as well as for IWL, since it results in a leaner and more robust balance sheet for the company, he added.
The company said combining the operations of both companies achieves cost savings through economies of scale, improved resource utilisation, elimination of redundant functions and operations, and streamlining of regulatory compliances.