Indowind Energy Strengthens Balance Sheet, Advances Solar Project

Chennai (Tamil Nadu) [India], January 2: Indowind Energy Limited (BSE: 532894 | NSE: INDOWIND), a renewable energy company engaged in the generation and distribution of power through windmills, has announced key financial and operational updates underscoring its focus on prudent capital deployment, balance sheet strengthening, and steady progress on new renewable energy projects.

Rights Issue Proceeds Utilised to Repay Legacy Liabilities

As part of the stated Objects of the Rights Issue, Indowind Energy Limited has successfully utilised the proceeds to significantly reduce its outstanding liabilities. The Company has repaid:

• ₹1,163 lakh of loans availed from associated parties

• Approximately ₹925 lakh towards outstanding dues payable to LIC

These repayments have resulted in a meaningful reduction in historical liabilities, marking a key step in resetting the Company’s balance sheet and improving its overall financial health.

Lower Debt Expected to Reduce Finance Costs

With the repayment of legacy borrowings, the Company expects a reduction in interest and related finance costs going forward. Lower debt servicing obligations are likely to support improved profitability, enhanced cash flows, and greater financial stability, creating a stronger foundation for future operations.

Management views this deleveraging exercise as a critical milestone that aligns with its long-term objective of maintaining a disciplined capital structure while supporting sustainable growth in the renewable energy sector.

Balance Sheet Reset Creates Headroom for Growth Funding

Following the clearance of historical liabilities, Indowind Energy Limited is now better positioned to raise fresh borrowings for expansion. The strengthened balance sheet provides the Company with increased flexibility to evaluate and undertake new renewable energy projects aimed at improving turnover and long-term earnings visibility.

This financial reset is expected to enhance lender confidence and enable the Company to selectively pursue growth opportunities in line with its strategic priorities, without placing undue stress on its capital structure.

Execution Initiated for 4 MW Solar Power Project

On the operational front, Indowind Energy Limited has commenced the execution phase of its 4 MW solar power project, following the finalisation of contracts. The start of implementation marks a transition from planning to on-ground execution and represents an important step toward diversifying the Company’s renewable energy portfolio beyond wind power.

The solar project is expected to contribute to future revenue generation and aligns with the Company’s broader strategy of participating in India’s expanding clean energy ecosystem.

Way Forward

Indowind Energy Limited remains focused on disciplined capital allocation and timely project execution, leveraging its strengthened financial position to pursue sustainable growth opportunities in renewable energy. With debt levels reduced and execution underway on the solar project, the Company aims to build a stable platform for long-term performance and value creation.

Commenting on the developments, Bala Venckat Kutti, Promoter of Indowind Energy Limited, said:

“Our immediate focus has been on putting the Company on a stronger financial footing while preparing for the next phase of growth. The steps taken over the past few months are expected to improve cost efficiency and provide greater flexibility as we move ahead with project execution. With work now underway on the solar project, we remain focused on steady progress and building a platform for sustainable performance.”

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