NCLT approves Inox Green Energy’s power evacuation business demerger

The National Company Law Tribunal (NCLT), Ahmedabad Bench, has approved the demerger of the Power Evacuation Business of Inox Green Energy Services Limited (IGESL) into Inox Renewable Solutions Limited (IRSL). The order was pronounced on March 13, 2026, and IGESL informed the stock exchanges of the development on March 14, 2026.

The scheme has an appointed date of October 1, 2024. Under the arrangement, all assets, liabilities, contracts, licences, and employees associated with the Power Evacuation Business will be transferred from IGESL to IRSL. The scheme will become effective once IGESL files a certified copy of the order with the Registrar of Companies (RoC), Gujarat. 

The restructuring aims to position IGESL as a focused wind turbine operations and maintenance (O&M) company, while IRSL will consolidate engineering, procurement and construction (EPC) and power evacuation activities under one entity. Both companies are part of the INOX GFL Group.

At present, IRSL has non-convertible debentures listed on BSE. Following the implementation of the scheme, its equity shares will also be listed on both stock exchanges.

A valuation conducted by Finvox Analytics and reviewed by Marwadi Chandarana Intermediaries Brokers determined the share entitlement ratio. Under the scheme, shareholders will receive 122 equity shares of IRSL for every 1,000 equity shares of IGESL. A corresponding warrant exchange ratio has also been determined.

Meetings of stakeholders were held on November 1 and 2, 2025. Equity shareholders of IGESL approved the scheme with 99.78% of votes in favour. Secured and unsecured creditors, warrant holders, and debenture holders of both companies voted unanimously in favour, with no votes recorded against the proposal.

The Income Tax Department placed on record an outstanding demand of Rs 96.80 crore against IRSL for Assessment Year (AY) 2023-24. The company has challenged the demand, and the Principal Commissioner of Income Tax (PCIT), Vadodara, has granted a stay subject to a pre-deposit.

The NCLT order preserves the Income Tax Department’s right to pursue tax proceedings independently of the scheme’s approval. IRSL has also reported losses in each of the past three assessment years.

The Regional Director and the Income Tax Department indicated no objection to the scheme, subject to statutory compliance. The NCLT directed IRSL to pay legal costs of Rs 50,000 to the Regional Director.

Both companies are required to file the certified copy of the order with the RoC within 30 days. The detailed final order is awaited and will be submitted to the stock exchanges once received.