Inox Green Energy Services has received formal approval from the National Company Law Tribunal (NCLT) for the strategic demerger of its Power Evacuation Business into Inox Renewable Solutions. With an appointed date of October 1, 2024, this restructuring is designed to streamline operations and unlock value by establishing the company as a pure-play operations and maintenance provider. The demerger creates two distinct entities, each with a focused operational strategy for future growth.
Strategic Business Realignment
The approved scheme of arrangement facilitates the separation of Inox Green Energy Services’ Power Evacuation Business into Inox Renewable Solutions. This move is aimed at consolidating specific business lines, allowing both entities to pursue independent growth strategies. By segregating these distinct verticals, the company aims to enhance its focus on operations and maintenance (O&M) services for wind turbine generators, while the resulting company concentrates on power evacuation infrastructure and related activities.
Share and Warrant Entitlement Ratio
As part of the approved demerger, shareholders and warrant holders of Inox Green Energy Services will be issued securities in Inox Renewable Solutions based on a valuation exercise conducted by an independent registered valuer. The approved entitlement ratio is as follows:
- 122 equity shares of the resulting company for every 1,000 equity shares held in Inox Green.
- 122 convertible warrants of the resulting company for every 1,000 convertible warrants held in Inox Green (at an issue price of INR 205).
- 1,000 convertible warrants of the resulting company in exchange for every 1,000 convertible warrants held in Inox Green (at an issue price of INR 120).
Future Operational Focus
With this structural change, Inox Green Energy Services transitions into a pure-play O&M company, which is expected to improve its operational efficiency and clarify its investment profile. The consolidation within Inox Renewable Solutions is projected to unlock value for stakeholders by providing a more specialized approach to the power evacuation sector. The company is now moving forward with the formal implementation of the scheme following the NCLT order.
Source: BSE
