Inox Wind Rights Issue Explained: 27% Discount Offer for Shareholders

Key Highlights of the Rights Issue

• Total Issue Size: ₹1,249.33 crore

• Issue Price: ₹120 per share (includes ₹110 premium)

• Face Value: ₹10 per share

• Market Price (as of July 16, 2025): ₹165.60 per share

• Discount Offered: ~27%

• Record Date: Tuesday, July 29, 2025

• Rights Ratio: 5 equity shares for every 78 held

What is a Rights Issue?

A rights issue is a method by which a company raises additional capital by offering new shares to its existing shareholders. According to Section 62(1) of the Companies Act, 2013, such offers must be made proportionally to existing shareholding.

Understanding Rights Entitlements (REs)

Rights Entitlement (RE) is the right given to existing shareholders to subscribe to additional shares in a rights issue. These REs are credited in dematerialised form under a new ISIN created by the company.

For Inox Wind:

• Shareholders holding shares as on record date (July 29, 2025) will receive REs in the ratio of 5:78.

Options Available to Shareholders

As per SEBI guidelines, eligible shareholders have five options:

1. Full Subscription: Apply for all shares under your entitlement.

2. Full Subscription + Extra Shares: Apply for your full entitlement plus additional shares (if available).

3. Partial Subscription: Apply for a part of your entitlement without renouncing the rest.

4. Partial Subscription + Renunciation: Subscribe to a part and renounce the remaining rights in full or part to another person.

5. Full Renunciation: Renounce your entire entitlement to another investor.

How to Renounce Rights Entitlements

REs credited to demat accounts can be sold on the stock exchange via a registered stockbroker, similar to selling equity shares.

• • Unsubscribed or unrenounced REs before the issue closing date will lapse and be extinguished after the offer ends.

Why This Matters for Investors

This rights issue allows existing shareholders to increase their stake at a discounted rate while supporting the company's expansion and long-term stability. With Inox Wind’s strong fundamentals and strategic initiatives in renewable energy, this could be a valuable opportunity for long-term investors.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors should consult with their financial advisor before making investment decisions.