NCLT Approves Merger Of Inox Wind Energy With Parent Inox Wind
Based on the swap ratio, the merger is in the favour of Inox Wind Energy shareholders by nearly 25%.
The National Company Law Tribunal has approved the scheme of arrangement between Inox Wind Energy Ltd. and Inox Wind Ltd. and their respective shareholders.
In December 2023, Inox Wind Ltd. had received clearance from both stock exchanges, BSE and NSE, for the proposed merger between Inox Wind Energy Ltd. and Inox Wind Ltd.
The company had called for a no-objection from the exchanges and the shareholders of both the entities for the proposed merger. The board of directors of Inox Wind Ltd. in June 2023 approved the scheme of amalgamation of Inox Wind Energy into Inox Wind. The merger was subject to a few regulatory approvals and compliances.
"BSE and NSE, vide their letters dated 27 December 2023, have issued their Observation Letters as required under Regulations 37 and 59A of the Listing Regulations with 'No adverse observation/ No objection', to the proposed scheme," said the company's filing.
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%.
Shares of Inox Wind closed 0.37% higher at Rs 397 apiece on the NSE, compared to a 0.99% advance in the benchmark Nifty at close. It has risen 22.27% in the last 12 months and 2.19% on a year-to-date basis.
Seven out of the eight analysts tracking the company have a 'buy' rating on the stock and one recommends a 'hold', according to Bloomberg data. The 12-month analysts' consensus target price on the stock is Rs 220.17, implying a upside of 19%.
