NCLT Clears Inox Wind–IWEL Merger, Paving Way for Debt Reduction and Operational Gains

The National Company Law Tribunal (Chandigarh bench) has granted approval for the merger of wholly-owned Inox Wind Energy Ltd (IWEL) into parent company Inox Wind Ltd (IWL), per its June 10, 2025 order. Under the scheme, IWEL shareholders will receive 632 IWL shares of face value of ₹10 each for every 10 equity shares held, post a record date, which will be determined later.

Simplified Structure and Stronger Balance Sheet

The consolidation marks a key milestone for the INOXGFL Group, eliminating redundant holding company structures and delivering substantial financial relief. Group liabilities under IWL are set to decrease by around ₹2,050 crore.The merged footprint is expected to deliver cost efficiencies through streamlined operations and regulatory compliance.

Shareholder Value and Strategic Synergies

The share swap appears aimed at equitable value transfer: 632 IWL shares per 10 IWEL shares, with delivery expected within 1-1.5 months. The operational consolidation promises economies of scale and cost rationalisation, providing a platform for stronger returns and investor value .

Operational Turnaround & Performance Momentum

The merger aligns with IWL’s recent operational upswing. In FY25, revenue doubled to ₹3,702 crore and EBITDA surged 167% to ₹918 crore. Cash PAT soared nearly 800% to ₹734 crore.The firm ended the year with a record order book of approximately 3.2 GW, including 705 MW delivered in Q4.

What This Means for Investors

This is a value-enhancing move for both shareholders and institutional stakeholders. The merger reduces debt levels, simplifies corporate structure, and enhances financial flexibility-essential for capitalising on renewable-energy expansion .

Furthermore, the consolidated entity enters FY26 with a leaner balance sheet and accelerated operational momentum, thanks to robust execution and a firm order pipeline.

Outlook: From Turnaround to Scaling Up

With the merger now sanctioned, the combined entity is better positioned to scale its leadership in India’s wind-energy segment. The improved financial health and streamlined corporate structure lay a foundation for enhanced returns, as IWL seeks to leverage its recent turnaround and operational gains.

The next steps for investors will be clarity on the record date, finalisation of share allotment, and tracking performance in FY26. If execution continues apace, Inox Wind is poised to further consolidate its standing in India's clean energy transition-representing a compelling case for long-term positioning in the renewables space.

Summary

The NCLT-approved merger between Inox Wind Energy and Inox Wind represents a strategic consolidation, delivering a reduction in liabilities, cost synergies, and structural simplification. Coupled with IWL’s strong FY25 performance and order momentum, the merger sets a compelling stage for continued growth and investor interest in India’s renewable infrastructure sector.

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