Inox Wind Energy, Inox Wind shares in focus as NCLT approves merger; record date to be declared shortly

In a significant development for the INOXGFL Group, Inox Wind Energy Ltd (IWEL) on Wednesday said it received a copy of the final order of the National Company Law Tribunal (NCLT) Chandigarh Bench regarding the merger of the company with Inox Wind Ltd (IWL). This decision, formalised on 10th June 2025, marks a critical step in the consolidation efforts of the group within the energy sector. This strategic move is expected to bolster the group's position in the renewable energy market, enhancing its competitive edge.

The merger is expected to enhance the financial stability of the combined entity, boasting a more robust balance sheet and reducing liabilities by approximately Rs 2,050 crore, Inox Wind said in an exchange filing. This consolidation is expected to deliver significant cost savings through economies of scale and improved resource utilisation, while also streamlining regulatory compliance processes, ensuring a more efficient operational framework, the filing suggested. 

The simple business structure post-merger would eliminate the holding company structure, providing a direct holding for INOXGFL Group promoters in Inox Wind. This is anticipated to enhance value for stakeholders, thanks to the combined synergies and streamlined operations. Besides, the merger is expected to foster a more unified approach to business strategy and execution.

Under the terms of the merger, IWEL shareholders will receive 632 equity shares of IWL for every 10 equity shares they hold in IWEL. This transition is expected to complete within 1 to 1.5 months, pending regulatory clearances. The share exchange ratio reflects a fair valuation and is designed to ensure equitable treatment of all shareholders.

Executive Director of INOXGFL Group, Mr. Devansh Jain, commented on the merger, "We thank the Hon’ble NCLT for approving the scheme of merger of IWEL into IWL. 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."

Jain also highlighted the merger as a milestone for their wind business, noting the operational and financial turnaround achieved over the past two years. "We believe that this 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. This strategic alignment is expected to drive future growth and innovation.

Aligning with India's green energy targets, the INOXGFL Group aims to expand its operations across the clean energy spectrum. This merger positions the group to capitalise on imminent large-scale opportunities within the sector, reflecting its commitment to advancing India's energy transition goals. The group is poised to play a pivotal role in the nation's shift towards sustainable energy solutions.