Leap Green Energy, a clean energy company promoted by India’s first Formula One driver Narain Karthikeyan, has bought all windfarms owned by Inox Renewables for an undisclosed amount.
Two people directly aware of the development said the deal gave Inox Renewables an enterprise value of more than Rs 1,000 crore.
Inox Renewables, a wholly owned subsidiary of Inox group flagship Gujarat Fluorochemicals (GFL), has 260 MW of windfarms across Rajasthan, Maharashtra, Madhya Pradesh and Tamil Nadu.
Coimbatore-based Leap Green Energy, founded by Karthikeyan and his family in 2006, entered into definitive agreements for the purchase of all the operating windfarms of Inox Renewables and Inox Renewables (Jaisalmer) Limited, GFL said in a late afternoon stock exchange filing on Tuesday, without disclosing the commercial terms of the transaction
“The group decided to exit the wind farming business and focus on its core business, including that of wind turbine manufacturing”, said Deepak Asher, Inox’s group head of corporate finance. “This transaction will decrease the leverage of GFL at a consolidated level, by reducing debt of around Rs 800 crore that was attributable to the wind farming business, and free up management time to focus on our core businesses,” he said.
The $3-billion Inox Group has interest in diversified areas from industrial gases to wind turbine manufacturing to cinemas.
The Karthikeyan family is the promoter of the South India-based PSG Group of educational institutions and has business interests in textiles apart from clean energy. The family is closely related to the owners of south India-based Lakshmi Mills.