Inox Wind Energy Shares Jump 18% To A Record As Board Approves Merger With Parent

Shares of Inox Wind Energy Ltd. hit an all-time high on Tuesday after its board approved its merger with parent company, Inox Wind Ltd.

As per the scheme of amalgamation, 158 equity shares of Inox Wind will be issued for every 10 held in Inox Wind Energy.

And, for every 10 share warrants of Inox Wind Energy with an issue price of Rs 847 each, 158 share warrants of Inox Wind will be issued at a price of Rs 54 each.

Based on the swap ratio, the merger is in the favour of Inox Wind Energy shareholders by nearly 25%--as the value Inox Wind investors are getting is 25% lower going by Monday's closing price.

Meanwhile, share prices of Inox Wind declined the most in a week.

Shares of Inox Wind Energy rose 13.01% to Rs 2,054.55 apiece, compared to a 0.5% advance in the NSE Nifty 50 as of 10:23 a.m. The stock has gained as much as 18.15%, the most in over five weeks since May 8.

The average traded volume so far in the day stood at 20.1 times its monthly average. The relative strength index was at 86, implying that the stock may be overbought.

Shares of Inox Wind Ltd. fell 4.32% to Rs 139.5 apiece, compared to a 0.5% advance in the Nifty as of 10:23 a.m. The scrip has fallen as much as 5.07%, the most in a week since June 5.

The average traded volume so far in the day stood at 2.6 times its monthly average. The relative strength index was at 61.5.