Home / Companies / News /  Inox GFL Group raises 1,500 crore, pares down debt; Inox Wind Energy stock rallies

Inox GFL Group on Thursday announced fundraising to the tune of 1,500 crore after the initial public offering (IPO) of Inox Green Energy and stake sale in Gujarat Fluorochemicals (GFL). The fresh capital has been used to pare down debt substantially across its operating companies. With this, the Group takes a significant step towards achieving zero net debt. The majority of Inox stocks are traded in the green.

As per the regulatory filing, the Group raised 740 crore through Inox Green Energy IPO and the proceeds are primarily used for debt repayment.

Further, the Group raised 720 crore through the sale of shares of GFL. The sale proceeds, net of expenses and taxes, have been infused in Inox Wind.

In turn, the regulatory filing revealed that Inox Wind has repaid the advances it took from GFL to set up wind energy capacities.

Notably, GFL gave advances to IWL for setting up the wind power capacity which is being refunded by IWL to GFL owing to the current policies limiting captive usage of Wind Power.

Devansh Jain, Executive Director of Inox GFL Group said, "We at Inox GFL Group had laid out a goal to deleverage across the Group and put in place a clear roadmap to achieve this. The recent fundraising activity has been a very significant step in that direction."

Further, Devnash said, "while our chemical business has been doing very well and has a very strong growth outlook, especially with our new investments in fluoropolymers and in the EV space, the renewable energy business had been hit by policy changes in the sector, however with strengthening of the balance sheet and the macros turning in favour of the sector, we envisage robust growth going forward."

All the operating entities of the Group are now firmly placed and making conscious efforts to further reduce their debt burden, and interest outflow and consequently enhance profitability significantly, it said.

Inox GFL Group aims to become a zero-net debt Group going forward.

Majority of Inox Group stocks traded in the green with strong buying seen in Inox Wind Energy after the company repaid advances to GFL.

On BSE, at the time of writing, Inox shares traded at 987.20 piece up by 2.07%. While Inox Leisure and Inox Wind traded near their day's high with an upside of nearly 1%. However, Inox Green Energy traded lower by a percent.

INOX GFL Group is an Indian Conglomerate with a legacy of more than 90 years. The Group is primarily focused on two business verticals - chemicals and renewable energy, comprising of Fluoropolymers, Speciality Chemicals, Wind Energy, and Renewables.

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