Inox Group firms have entered into agreements to sell their operating wind farms to Leap Green Energy and its subsidiaries, on a slump sale basis, for an undisclosed amount.
“I nox Renewables (IRL), a wholly-owned subsidiary of Gujarat Fluorochemicals and Inox Renewables (Jaisalmer) (IRJL), a wholly-owned subsidiary of IRL, both a part of Inox Group, entered into definitive agreements for sale of substantially all of their operating wind farms to Leap Green Energy (LGE) and its subsidiaries, on a slump sale basis, for an undisclosed price,” a company statement said.
The transaction is subject to fulfilment of certain conditions precedent, and is expected to complete over the next few months, the statement said. IRL is one of the leading renewable energy companies in India and together they own operating wind farms in Rajasthan, Maharashtra, Madhya Pradesh and Tamil Nadu, that have a total capacity of 260 MW, it said.
“Inox Group decided to exit wind farming business and focus on its core businesses, including that of wind turbine manufacturing. This transaction will decrease the leverage of GFL at a consolidated level, by reducing debt of around Rs 800 crore that was attributable to the wind farming business, and free up management time to focus on our core businesses,” Deepak Asher, Director and Group Head (Corporate Finance) of the Inox Group of companies said. “This acquisition will help increase Leap Green’s operating capacity to 762 MW across 4 states, making it amongst the largest independent power producer (wind energy) companies in India. They further added that Leap Green is now gearing itself up to scale its total operating capacity to 2GW by 2019,” LGE said in the statement.