Refex Industries Limited has increased its shareholding in its subsidiary, Venwind Refex Power Limited (VRPL), from 73.28% to 77.39% following the conversion of Class B Optional Convertible Debentures (OCDs) into equity shares. This conversion has resulted in the allotment of 24,866 equity shares to Refex Industries, each with a face value of ₹10.
The conversion of OCDs, valued at ₹43,00,00,000, was executed at a premium of ₹17,283 per equity share. This strategic move aims to strengthen the capital structure of VRPL, supporting its future growth and operational expansion in the power and energy sector, particularly focusing on wind power and related activities.
VRPL, incorporated on 20 December 2024, is an existing subsidiary of Refex Industries and operates within the power and energy industry. The conversion aligns with the provisions of the Companies Act, 2013, and other relevant regulatory guidelines, ensuring compliance with related party transaction norms.
The paid-up capital of VRPL has increased from 1,36,745 fully paid-up equity shares, aggregating to ₹13,67,450, to 1,61,611 fully paid-up equity shares, aggregating to ₹16,16,110, post-conversion. Despite being a related party transaction, there is no fresh infusion of capital funds, as the conversion pertains to existing Class B OCDs issued by VRPL.
Venwind Refex Power Limited reported nil turnover for the financial year 2024-2025, and its financial sustainability is expected to improve with this conversion, aiding in optimising its debt-equity ratio.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).
This article is written by Kinjal and reviewed by Aman Shukla before publication.