Inox Green Energy shares experienced a decline of over five percent in early trading on June 24 following an announcement by the company’s board of directors regarding potential fundraising plans.
On June 21, Inox Green Energy management disclosed through an exchange filing that they will convene a board meeting on Wednesday, June 26, to deliberate on proposals for raising funds.
As of 11:15 am, Inox Green Energy shares were trading at Rs 166.3 on the BSE, marking a decrease of 2.8 percent from the previous day’s close.
According to reports, the company is contemplating raising up to Rs 1,000 crore through preferential allotment and issuance of warrants to facilitate potential future acquisitions.
In a statement to the stock exchanges, Inox Green Energy stated, “We wish to inform you that a meeting of the Board of Directors of Inox Green Energy Services Limited is scheduled to be held on Wednesday, 26 June to consider the proposal for raising of funds by way of issuance of one or more securities including equity shares, convertible securities of any description or warrants, through preferential issue, private placement, rights issue or any other methods or combination thereof as may be permitted under applicable laws.”
In its financial results for the January to March quarter, the company reported a 7.8 percent decline in revenue compared to the same period last year. Despite this, Inox Green Energy recorded a net profit of Rs 20.3 crore, a significant improvement from a net loss of Rs 1.8 crore in the corresponding period of the previous year.
EBITDA for the quarter fell by 20.7 percent year-on-year to Rs 11.5 crore, with the margin decreasing to 21.9 percent from 25.5 percent in the previous year.
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