In a landmark move, Inox Wind Limited (IWL) and Inox Wind Energy Limited (IWEL) have officially merged, following the approval of the National Company Law Tribunal (NCLT), Chandigarh Bench. This merger marks a pivotal restructuring step by the INOXGFL Group, aiming to create a more robust, efficient, and transparent business model in the rapidly growing wind energy sector of India.

NCLT Approval and Merger Framework

The approval order, dated 10th June 2025, enables IWEL to be amalgamated into IWL, consolidating the group’s wind energy operations under a single unified entity. This is a part of a broader strategic roadmap that the INOXGFL Group has pursued over the past two years, focusing on financial optimization, business streamlining, and stakeholder value creation.

With this merger, IWL will issue 632 equity shares of face value ₹10 each for every 10 shares held by shareholders of IWEL, on a Record Date that will be determined shortly. Shareholders can expect these shares to be credited within 1 to 1.5 months, subject to regulatory approvals.

Key Objectives Behind the Merger

1. Enhanced Financial Strength

One of the biggest advantages of this merger is a sharp reduction in liabilities. Inox Wind’s total liabilities are expected to reduce by approximately ₹2,050 crore, significantly strengthening its balance sheet and financial flexibility.

This transformation positions IWL as a leaner and financially healthier company, with better access to capital and the ability to pursue growth opportunities more aggressively in the clean energy space.

2. Improved Operational Efficiency

The merger facilitates cost savings and synergy realization across several dimensions. These include:

• Economies of scale

• Improved resource utilization

• Elimination of redundant roles and processes

• Streamlining of regulatory compliance

Such integrations allow IWL to focus on its core business priorities, improve cash flows, and unlock value for both investors and customers.

3. Business Simplification and Direct Shareholding

Another key highlight is the removal of the holding company structure. Post-merger, the promoters of the INOXGFL Group will hold shares directly in Inox Wind, rather than through IWEL.

This step simplifies the shareholding structure, increases transparency, and reduces corporate governance complexities, enabling faster decision-making.

Strategic Comments from Leadership

Mr. Devansh Jain, Executive Director of INOXGFL Group, remarked:

“We thank the Hon’ble NCLT for approving this merger, which marks a significant achievement in our transformational journey. Over the past two years, we’ve achieved a remarkable operational and financial turnaround, and laid the foundation for exponential growth in the coming years.”

He emphasized that this merger is particularly beneficial for all stakeholders, including minority shareholders, by making the business more streamlined and efficient.

Further, Jain reiterated the group’s commitment to India’s green energy vision, aligning its strategy with the Government’s ambitious renewable energy goals under the leadership of Prime Minister Narendra Modi.

Alignment with India’s Energy Transition Goals

The merger comes at a time when India is aggressively expanding its renewable energy footprint. The INOXGFL Group, with its strong position in wind and other clean energy segments, is ideally placed to capitalize on these opportunities.

The simplification of structure and enhancement in financials will enable Inox Wind to:

• Invest in new capacity

• Explore partnerships and joint ventures

• Lead innovation in wind technology

• Scale up manufacturing and service capabilities

This aligns directly with India’s clean energy roadmap, which targets achieving 500 GW of renewable energy capacity by 2030.

Impact on Shareholders and Investors

The share swap ratio of 632 IWL shares for every 10 IWEL shares is designed to ensure a fair and balanced transition for IWEL shareholders. With the integration complete, shareholders will now have direct ownership in a more financially strong and operationally efficient company.

The move is also expected to result in enhanced stock market performance, improved investor perception, and increased institutional interest due to the company's leaner structure.

Next Steps and Regulatory Timeline

As per the official announcement:

• Record Date for share allocation will be announced shortly

• Shares to IWEL shareholders will be credited in 1 to 1.5 months, subject to clearances

• IWL will commence necessary regulatory filings and public disclosures post-merger

Investors and stakeholders are advised to keep track of stock exchange updates and official notifications from IWL for further actions.

Conclusion: A Milestone for INOXGFL Group’s Wind Energy Vision

This merger is a decisive step in the INOXGFL Group’s roadmap to emerge as a leader in India’s renewable energy space. The integration of IWEL into IWL not only strengthens financials but also enhances the group’s capability to operate as a more agile, efficient, and investor-friendly organization.

As the clean energy market continues to evolve, Inox Wind’s strategic consolidation positions it to leverage upcoming opportunities, deliver superior stakeholder value, and contribute meaningfully to India’s sustainability targets.

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