Inox Wind guarantees Rs 2,200cr banking facilities

Inox Wind assured Rs 2,200 crore in banking facilities through a consortium led by ICICI Bank, without corporate assurances from Gujarat Fluorochemicals.

Inox Wind Ltd has entered into a significant consortium agreement with 10 banks, led by ICICI Bank, to secure banking facilities worth approximately Rs 2,200 crore.

These banking facilities primarily consist of non-fund based limits like bank guarantees and letters of credit, which have been sanctioned without the need for corporate guarantees from its group company, Gujarat Fluorochemicals Ltd (InoxGFL). The agreement was announced through a filing on the stock exchange.

Increase in Banking Limits

Inox Wind also mentioned that the banking limits could be increased to Rs 2,400 crore, pending the working capital assessment by ICICI Bank. Importantly, any previous corporate guarantees provided by Gujarat Fluorochemicals to Inox Wind will be vacated soon.

Inox Wind’s balance sheet has turned net cash positive following recent fundraising efforts and operational improvements.

InoxGFL Group Stocks Surge

Inox Wind’s share price surged 7.5% on Friday, closing at Rs 259.6, a more than fivefold increase over the past year, bringing the company’s market capitalization to Rs 33,140 crore.

Group company Gujarat Fluorochemicals saw its stock price rise 1.65% to Rs 4,237, achieving a 40% increase over the last year, with a market cap of Rs 46,580 crore.

Statement from Group CFO Akhil Jindal

Commenting on the consortium arrangement, Akhil Jindal, CFO of the InoxGFL Group, said the agreement is the result of “several quarters of efforts” and is supported by the company’s strong operational performance and positive outlook.

This move further emphasizes Inox Wind’s financial independence and reduces contingent liabilities associated with Gujarat Fluorochemicals’ corporate guarantees.

As part of the arrangement, Gujarat Fluorochemicals confirmed that its corporate guarantees for Inox Wind will soon be released, further boosting the financial standing of both companies.

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