Inox Wind Limited (IWL), a company that provides wind energy solutions, has signed a big agreement with a group of 10 banks, led by ICICI Bank. The deal gives Inox Wind access to credit worth ₹2,200 crore, which could go up to ₹2,400 crore based on an assessment by ICICI Bank.
Shares of Inox Wind went up 5.16%, closing at ₹253.90 on the BSE.
Most of this credit will come as non-cash support, such as bank guarantees and letters of credit. The credit has been approved based on Inox Wind’s financial strength, without needing support from its parent company, Gujarat Fluorochemicals Ltd. (GFL). Any earlier financial backing from GFL will be canceled soon.
Inox Wind also mentioned that its recent fundraising efforts have made it cash-positive, improving its financial position. Akhil Jindal, CFO of the INOXGFL Group, said this deal shows how much the banks trust the company’s financial stability, thanks to its solid operations and future outlook.
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