Inox Green Energy Gets BSE, NSE Nod for Strategic Demerger into Resco Global

Image Source: The Financial Express

Inox Green Energy Services Ltd has received official approval from the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) for its ongoing plan of arrangement to demerge its power evacuation business into Resco Global Wind Services Ltd. Regulatory approval is a key achievement for the company to become a pure-play operations and maintenance (O&M) services company for wind turbine generators.

Key Highlights:

- The proposal was cleared in the board meeting on Nov 13, 2024, and now moves ahead with shareholder as well as NCLT approval subject to.

- Shareholders in Inox Green will get 122 shares of Resco Global (face value of ₹10) for every 1,000 shares of Inox Green.
- The warrant holders shall be given 122 Resco convertible warrants of ₹205 each for every 1,000 Inox Green warrants of ₹145.

Strategic Significance:

- The demerger will streamline Inox Green's business model by demerging its power evacuation business, which is capital-intensive, from its core O&M services.

- Resco Global acquires transmission and grid connection assets and operations, while Inox Green is more inclined to keep wind power facilities intact.

Operational Impact:

- The power evacuation business contributed ₹14.93 crore, or 6.19 percent, to Inox Green's overall turnover in the last fiscal year.

- Post-demergers, Inox Green's promoter shareholding will be 56.92 percent and Resco's will go up from 8.10 percent to 16.34 percent.

Sources: The Hindu BusinessLine, Economic Times, Moneycontrol, NSE India, Inox Green Energy Services Ltd Corporate Filings