Inox GFL Group on Thursday said it has raised about Rs 1,500 crore from its units in the last fortnight. The Indian conglomerate said the amount has been used to substantially reduce their debt and consequently the interest expense will come down.
The company said that in the renewable energy arm, Rs 740 crore was raised through the recent initial public offering (IPO) of Inox Green Energy Services (IGESL) and the funds raised were mainly used for debt repayment. Is.
Besides, the company said that the promoters have recently raised Rs 720 crore through sale of shares in Gujarat Fluorochemicals (GFL). The company said the sale proceeds, net of expenses and taxes, have been infused into Inox Wind (IWL), in return for IWL repaying the advances taken from GFL for setting up wind power capacity.
According to the company, GFL had given an advance to IWL for setting up wind power capacity, which is being returned by IWL to GFL, as the current policies limit captive use of wind power.
Inox GFL Group said that all the operating units of Inox GFL Group are making conscious efforts to reduce their debt burden, interest outflow and have resulted in substantial increase in profitability.
Devansh Jain, Executive Director, INOX GFL Group said, “At INOX GFL Group, we had set a goal of driving profitability across the group and had a clear roadmap to achieve this. The recent fundraising activity is a step in this direction. It’s been a very important step in that direction.”
The executive director said that while the group’s chemical business was doing very well and had a very strong growth outlook, especially with new investments in the fluoropolymer and electric vehicle sector, the renewable energy business was impacted by policy changes in the sector, however, the balance With the sheet strengthening and macros favoring the sector, the company envisages strong growth going forward.
“As promoters, we have had to take some tough decisions to ensure the sustenance of all our companies. Our stand has been vindicated today as we stand on the cusp of exponential growth across all our businesses,” he added.
(This story has not been edited by NDTV staff and was auto-generated from a syndicated feed.)
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