IiAS flags Rs 200-cr debt raising plan by Inox Wind

Proxy advisory firm Institutional Investor Advisory Services(IiAS) has flagged Inox Wind’s plan to raise Rs 200 crore via debt or equity to meet its long-term fund requirements for capital expenditure and working capital needs to expand renewable projects. The proxy advisory firm cited high equity dilution at current stock price, and increase in leverage in case of debt raise as the reason for flagging against the fundraise.

The Inox board on October 6 approved an enabling resolution to raise the fund on private placement basis, preferential placement or through qualified institutional placements (QIPs). An extraordinary general meeting (EGM) has been called on October 29 to seek shareholders’ approval for the fundraise as well as other resolutions on related party transactions and increasing the authorised capital of the company.