Inox Wind Ltd has entered into a consortium agreement with a group of 10 banks, led by ICICI Bank, to secure banking facilities worth around Rs 2,200 crore. These facilities largely consist of non-fund based limits like bank guarantees and letters of credit, and have been sanctioned without any corporate guarantees or support from InoxGFL group company Gujarat Fluorochemicals Ltd, it said in a stock exchange filing.
Further, the bank limits are expected to rise to Rs 2,400 crore, based on the working capital assessment conducted by ICICI Bank, said Inox Wind. It added that any previous corporate guarantees extended by Gujarat Fluorochemicals to Inox Wind will be vacated in the near future. Inox Wind balance sheet has turned net cash positive following recent fundraising activities and operational improvements, according to the statement.
InoxGFL group shares surge, Inox Wind stock gives multibagger returns
Inox Wind Ltd share price jumped 7.5 percent on Friday to end at Rs 259.6. The stock has ballooned more than 5 times in the last one year, taking the company's market capitalisation to about Rs 33,140 crore.
Group company Gujarat Fluorochemicals share price gained 1.65 percent on Friday to Rs 4,237. The stock has surged over 40 percent in the last one year, with the company's market capitalisation at Rs 46,580 crore.
Also read | InoxGFL Interview: Strong growth in wind energy business, expansion in chemicals segment
InoxGFL Group CFO Akhil Jindal said regarding the consortium arrangement: "This is the culmination of the last several quarters of efforts and is backed by the strong operational performance by the company and its robust outlook." This consortium agreement aligns with Inox Wind's focus on maintaining financial independence, he added.
GFL’s corporate guarantees fall off, reducing contingent liabilities
As a result of the consortium agreement signed by Inox Wind, Gujarat Fluorochemicals said that its corporate guarantees, previously extended to Inox Wind, will be vacated.
Akhil Jindal said that this would significantly reduce contingent liabilities, thereby further strengthening Gujarat Fluorochemicals balance sheet. He added that the group companies now have very strong balance sheets backed by robust operational performances, and are well positioned to lead in sectors such as renewable energy and chemicals.
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