Inox Wind Energy share price gains 15% on merger news; check details

Inox Wind Energy share price gains 16% on merger news with the parent company, Inox Wind. The stock opened at ₹1,950.1 versus the previous closing of ₹1,812.4, then further gained to touch a high of ₹2,150. The company's board on June 12 approved the merger of Inox Wind Energy into the parent company Inox Wind.  

At the time of writing this copy, Inox Wind Energy share price was at ₹2,101.55, up ₹289.15, or 16%.

Meanwhile, Inox Wind fell to ₹142.90, down ₹2.85, or 1.96%.

"Based on the recommendation of the Audit Committee and the Committee of Independent Directors, the Board has considered and approved the Scheme of Arrangement between Inox Wind Energy Limited ('Company' or 'IWEL' or 'Transferor Company') and Inox Wind Limited ('IWL' or 'Transferee Company') and their respective shareholders (the "Scheme"), which provides for merger of Transferor Company into IWL," Inox Wind Energy informed the exchanges in a filing.

The merger plan is still go get regulatory approvals. 

"The Scheme is, inter-alia, subject to receipt of approval from shareholders and creditors of the companies involved and approval of statutory and regulatory authorities, including approvals from Stock Exchanges, Jurisdictional National Company Law Tribunal, Chandigarh Bench ("NCLT")," the company filing said.

As per the deal, the INOX wind will release a total of 58 equity shares of face value of Rs. 10 each of IWL to INOX wind energy. In addition to this, Inox wind will release share warrants with an issue price of ₹54 each for every 10 share warrants of IWEL with an issue price of ₹847 each. Inox Wind Energy Limited (IWEL) net worth stands at ₹974.85 crore as on March, 2023. Its annual turnover is ₹12.45 crore. Its paid up share capital value stands at ₹11.22 crore. Inox Wind Limited (IWL) paid up capital stands at ₹925.95 crore, and its net worth is ₹2,321.50, with an annual turnover of ₹583.32 crore.

The merger will help the parent company in simplifying and streamlining its group structure by lowering down the number of listed entities in the group. It will help the company in ensuring better synergy of operations by way of focused operational efforts, standardisation and simplification of processes and productivity improvements. The scheme will overall help the company in increasing its operational efficiency of the combined business, reduction in the overall operational cost, administrative and compliance cost.