The Board of Directors of Indowind Energy, a wind power project developer, has proposed to issue 22.5 million convertible warrants to eligible proposed allottees on a preferential basis.

These warrants will be made available at ₹17.5 (~$0.21)/ warrant, with each warrant being convertible into one equity share, having a face value of ₹10 (~$0.12), and being fully paid up at a premium of ₹7.5 (~$0.09) in cash. The aggregate consideration for this issuance is set at up to ₹393.75 million (~$4.73 million).

Upon successful allotment, it is anticipated that the promoters will maintain a 50.9% stake while the public will hold the remaining 49.1% of the post-issue paid-up capital. This assumption is based on the scenario where all the proposed warrants are subscribed to and subsequently converted into equity shares.

The convertible warrants are subject to conversion within 18 months from the date of warrant allotment. In the event of non-compliance with this timeline, the funds paid for such warrants, along with the warrants themselves that remain unconverted, will be forfeited.

The management is actively considering the development of wind and solar farms with a capital outlay of up to ₹4 billion (~$48.12 million), to be implemented over four years.

The strategy involves leveraging a combination of debt and equity capital to execute the project in multiple stages, acquiring the necessary funds through several tranches.

To kickstart this initiative, the management is proposing a rights issue totaling up to ₹50 million (~$601,500). In line with this, the Board has initiated the formation of a dedicated committee entrusted with the responsibility of presenting a comprehensive report.

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