Inox Wind tanks 7% despite company's clarification on insolvency case
Inox said it has already settled the matter with Jeena & Co. and paid the amount due in relation to the case pending with National Company Law Tribunal.
Inox Wind shares fell nearly 7 percent in morning trade Monday despite the company's clarification on issues related to insolvency proceedings and Jeena case against it.
Last week media reports indicated the wind energy service provider is headed for insolvency, after the National Company Law Tribunal's Chandigarh bench (NCLT) ordered commencement of the process in response to the plea made by Jeena & Company, an operational creditor.
Customs agent, Jeena & company, filed the case with National Company Law Tribunal over non-payment of dues totalling Rs 57 lakh.
Inox Wind clarified the company has filed an appeal before the National Company Law Appellate Tribunal (NCLAT), seeking the said proceedings be quashed. The matter is listed for hearing today.
Inox further said it has already settled the matter with Jeena & Co. and paid the amount due in relation to the case pending with National Company Law Tribunal.
The company claimed it remains solvent and in fact, in excellent financial health. Its average revenues for last three financial years were Rs 3,525 crore and net profit of Rs 354 crore while it has net worth of Rs 2,190 crore and cash balance of Rs 749 crore as of March 2017.
It also said it has been regular in servicing all its commitments to lenders.
The Corporate Insolvency Resolution Process (CIRP) has been initiated in respect of Inox Wind under the provision of Insolvency and Bankruptcy Code, 2016 (IBC) by an order of National Company Law Tribunal, Chandigarh Bench, in the matter of Jeena & Company versus Inox Wind w.e.f. July 5.
At 10:02 hours IST, the stock price was quoting at Rs 151.40, down Rs 6.85, or 4.33 percent on the BSE.Posted by Sunil Shankar Matkar