Inox GFL Group raises Rs 1,500 cr, steps up measures towards zero net debt
The Indian conglomerate said the amount has been used to pare down debt substantially across its operating companies and consequently the interest outgo will reduce substantially.
ANI
Dec 08, 2022 12:18 IST
Noida (Uttar Pradesh) [India], December 8 (ANI): The Inox GFL Group on Thursday said it completed raising about Rs 1,500 crore across its entities in the last fortnight. The Indian conglomerate said the amount has been used to reduce their debt substantially and consequently the interest outgo will reduce.
The company said at the renewable energy arm, Rs 740 crore was recently raised through an initial public offering (IPO) of Inox Green Energy Services (IGESL) and the funds raised have been majorly utilised towards debt repayment.
Further, the company said the promoters recently raised Rs 720 crore through sale of shares of Gujarat Fluorochemicals (GFL). The sale proceeds, net of expenses and taxes, have been infused in Inox Wind (IWL), the company said, adding that in turn IWL has repaid the advances it took from GFL to set up wind energy capacities.
According to the company, GFL had given advances to IWL for setting up the wind power capacity which is being refunded by IWL to GFL owing to the current policies limiting captive usage of wind power.
Inox GFL Group said all the operating entities of the Inox GFL Group were firmly placed and making conscious efforts to further reduce their debt burden, interest outflow and consequently enhance profitability significantly.
Devansh Jain, Executive Director, Inox GFL Group, said, "We at Inox GFL Group had laid out a goal to deleverage across the Group and put in place a clear roadmap to achieve this. The recent fundraising activity has been a very significant step in that direction."
The Executive Director said while the group's chemical business had been doing very well and had a very strong growth outlook especially with new investments in fluoropolymers and in the electric vehicle space, the renewable energy business had been hit by policy changes in the sector, however, with the strengthening of the balance sheet and the macros turning in favour of the sector, the company envisaged robust growth, going forward.
He said, "As promoters, we have had to take a few tough decisions to ensure sustenance of all our companies. Today as we stand on the cusp of massive growth across all our businesses, our stand is vindicated." (ANI)
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