Chennai, January 2
Indowind Energy Limited has announced a series of financial and operational actions aimed at strengthening its balance sheet and accelerating execution in the renewable energy segment.
Debt Reduction Through Rights Issue Proceeds
The company has utilised funds raised through its recently completed rights issue to pare down legacy liabilities. This includes repayment of ₹1,163 lakh towards loans taken from corporate promoters and approximately ₹925 lakh towards outstanding dues payable to LIC under general corporate purposes. These repayments have led to a material reduction in overall liabilities on the balance sheet.Lower Finance Costs and Improved Financial Flexibility
With the repayment of these obligations, Indowind Energy expects a moderation in interest and related finance costs. The reduction in debt is intended to support improved profitability metrics while enhancing the company’s overall financial stability.Management indicated that the clean-up of legacy liabilities has also created headroom to raise fresh borrowings for growth initiatives. This positions the company to evaluate and undertake new projects aimed at improving turnover and long-term earnings visibility.
Solar Project Moves Into Execution Phase
On the operational front, Indowind Energy has initiated execution of finalised contracts for its 4 MW solar power project. The start of implementation marks a transition from the planning stage to on-ground execution, laying the foundation for future revenue generation from the solar segment.Management Commentary
Commenting on the developments, promoter Bala Venckat Kutti said the company’s immediate focus has been on strengthening its financial footing while preparing for the next phase of growth. He noted that the steps taken over the past few months are expected to improve cost efficiency and provide greater flexibility as project execution gathers pace, with work now underway on the solar project.About the Company
Incorporated in 1995, Indowind Energy Limited is an independent power producer operating in the renewable energy space, with a focus on wind power generation and allied services. The company has over three decades of experience in setting up, operating, and maintaining wind farms, supplying green power to corporates and electricity utilities. It recently completed a rights issue, raising ₹49.42 crore, to support balance sheet strengthening and future growth initiatives.Source:
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