Indowind Energy Limited , a player in the renewable energy sector, has received a significant boost for its capital raising plans. The company has secured in-principle approval from both the BSE Limited and the National Stock Exchange of India for its proposed rights issue, valued at Rs. 49.50 crores.

Rights Issue Details

The proposed rights issue involves equity shares with a face value of Rs. 10 each. These shares will be offered to eligible equity shareholders on a rights basis. While the exact pricing and ratio of the rights issue are yet to be finalized, the company has confirmed that the total issue size will aggregate up to Rs. 49.50 crores.

Approval Conditions

The stock exchanges have granted their approval subject to several conditions:

1. Timely filing of listing applications post-allotment
2. Obtaining necessary statutory approvals
3. Compliance with SEBI regulations and Companies Act requirements
4. Adherence to all guidelines, regulations, and directions issued by the exchanges or statutory authorities

Timeline and Validity

According to the approval letter dated August 25, 2025, Indowind Energy has a window of 12 months from the approval date to open the subscription for the rights issue. This gives the company ample time to prepare and execute the issue.

Exchange Disclaimers

Both exchanges have emphasized that their approval should not be construed as an endorsement of the company's financial health or the completeness of the information provided. They have reserved the right to withdraw the approval if the submitted information is found to be incomplete or misleading.

Implications for Investors

This rights issue presents an opportunity for existing shareholders to increase their stake in the company. However, potential investors are advised to carefully review the full text of the offer document, once available, to make informed decisions.

Company's Statement

B. Sharath, Company Secretary & Compliance Officer of Indowind Energy Limited, confirmed the receipt of in-principle approvals in a communication to the stock exchanges. The company views this as a positive step towards strengthening its capital base.

As Indowind Energy moves forward with its rights issue plans, market observers will be keenly watching how this capital infusion impacts the company's growth strategies in the competitive renewable energy sector.

Indowind Energy Limited has reported a significant increase in revenue and profit for the second quarter, demonstrating robust growth in its renewable energy operations. The company has also announced its upcoming Annual General Meeting and proposed the appointment of new independent directors.

Financial Performance

Indowind Energy's consolidated revenue for Q2 stood at ₹1,155.15 lakhs, marking a substantial rise from ₹736.66 lakhs in the same quarter last year. The company's consolidated profit after minority interest reached ₹229.45 lakhs, up from ₹160.80 lakhs in Q2 of the previous year.

On a standalone basis, the company's performance was equally impressive:

The standalone revenue saw a remarkable 72% year-on-year increase, while profit after tax grew by 7%.

Annual General Meeting

The Board of Directors has approved holding the 30th Annual General Meeting (AGM) on September 26, via video conferencing. The record date for the AGM has been set as September 19.

Proposed Appointment of Independent Directors

Indowind Energy has proposed the appointment of two new independent directors, subject to shareholder approval at the upcoming AGM:

1. Mr. Baskaran B R: A finance and legal professional with over 38 years of experience in accounting, taxation, and judicial service. Mr. Baskaran has a distinguished career, including service as an Accountant Member (Judge) in the Income Tax Appellate Tribunal.

2. Mr. Sridhar: Currently serving as a Non-Executive Director, Mr. Sridhar is a media professional with extensive experience in the print media industry, having worked with prestigious groups like "The Indian Express" and "The Hindu".

Auditor's Observations

The company's auditors have issued qualified opinions on certain financial matters:

1. Non-recognition of expected credit loss allowance on interest receivables of ₹248.13 lakhs from TNEB Tirunelveli and BESCOM.
2. Accounting treatment of claims against Suzlon Group totaling ₹9,083.39 lakhs and related advances.
3. A pending case regarding a ₹100 lakhs bank guarantee issued by Bank of Baroda (formerly Dena Bank) in 2002.

These qualifications highlight areas where the company's financial reporting practices diverge from certain accounting standards, potentially affecting the accuracy of the reported financial position.

Despite these audit qualifications, Indowind Energy's strong revenue growth and improved profitability underscore its positive performance in the renewable energy sector. The proposed appointment of experienced independent directors also signals the company's commitment to strengthening its corporate governance structure.