INOX Wind

Hi All,

There is a good arbitrage opportunity (around 38%) available between the merger of Inox Wind (IWL) and IWEL (Inox Wind Energy Limited).

The Board has approved swap ratios for the proposed amalgamation as below: – 158 equity shares of face value of Rs. 10/- per share of IWL to be issued for every 10 equity shares of face value of Rs. 10/- per share of IWEL.

The CMP of IWL is around Rs. 394 which works out to Rs. 6225 per share of IWEL.

IWEL is currently trading at 4480 (put in t2t few days back and hence the volumes are low).

The rationale for this merger is the consolidation of wind energy business and streamlining of group structure and operations. The appointed date for the amalgamation is set as July 1, 2023.

Already 4 months passed since the board approved merger. So the approval might be around the corner.