Whalesbook
The National Company Law Tribunal (NCLT), Ahmedabad Bench, has approved the demerger scheme for Inox Green Energy Services Limited (IGESL). This order, issued on March 13, 2026, officially sanctions the transfer of IGESL's power evacuation business to a new entity, Inox Renewable Solutions Limited (IRSL). The appointed date for the scheme is October 1, 2024. Notably, IRSL faces an outstanding Income Tax demand of ₹96.81 crore for Assessment Year 2023-24, with assessment and appellate proceedings pending.
Focused Business Units Emerge
This strategic separation aims to create two distinct, publicly traded companies. IGESL will focus on its core operations and maintenance (O&M) services for wind turbine generators, while IRSL will house the power evacuation business. The specialization is expected to enhance operational focus for both entities, attract sector-specific investors, and unlock greater shareholder value through independent growth strategies.
Shareholder Impact
IGESL shareholders will receive shares in the new entity, IRSL, based on a ratio of 122 IRSL shares for every 1,000 IGESL shares held. Following the demerger, IGESL will operate as a dedicated O&M services provider for wind assets, while IRSL will focus exclusively on the power evacuation business.
Key Risks and Compliance
A key concern for IRSL is an outstanding Income Tax demand of ₹96.81 crore for Assessment Year 2023-24, which is subject to pending assessment and appellate proceedings. Both IGESL and IRSL must also ensure strict compliance with all statutory and regulatory requirements from bodies like SEBI, FEMA, and RBI. Resolving these tax matters effectively will be crucial for maintaining investor confidence and ensuring operational stability for both companies.
Competitive Landscape
In the O&M sector, IGESL will compete against other renewable energy service providers. Meanwhile, IRSL, focused on power evacuation, will operate in the infrastructure segment. Its competitors in managing transmission networks include established players such as Power Grid Corporation of India and Adani Energy Solutions Ltd.
What to Watch Next
Investors will be tracking the official effective date of the Scheme, which depends on filing the certified NCLT order with the Registrar of Companies. Key areas to monitor include the completion of all required statutory and regulatory compliances, the progress and outcome of IRSL's pending tax proceedings, and any announcements regarding the listing of IRSL as a separate entity. Investor sentiment and the valuation of both IGESL and IRSL post-demerger will also be closely watched.