On Monday, Inox Wind Limited (IWL) declared that it had inked a consortium agreement worth roughly Rs 2,200 crore with a group of banks headed by ICICI Bank. It further stated that, based on the lead bank’s working capital evaluation, this ceiling will probably be increased to around Rs 2,400 crore (ICICI Bank).
The company stated in a regulatory filing that the limitations extended are mostly not dependent on funds [bank guarantees (BGs) and letters of credit (LCs)].Based on the soundness of Inox Wind’s balance sheet, the limitations have been approved without the need for corporate guarantees or further backing from Gujarat Fluorochemicals Ltd. (GFL).
The consortium agreement reflects the banking community’s faith in IWL’s financial stability, according to Akhil Jindal, Group CFO, INOXGFL Group. This represents the conclusion of several quarters of work and is supported by the company’s solid operational performance and optimistic future. We express our gratitude to all of our banking partners for their support throughout the years, mostly due to IWL’s ability to fulfill its obligations without endangering the banks or other financial institutions.
As a result of its recent fundraising efforts and increased business activity, IWL has achieved net cash positivity on its balance sheet. With this agreement in place, any previous corporate guarantee or other support given to IWL by GFL is vacated or will be vacated soon. It also stated that IWEL had raised the money on May 28 by selling Inox Wind equity shares in block trades on stock markets, in which several well-known investors had taken part.
