Refex Industries Limited Increases Stake in Subsidiary Venwind Refex Power Limited

Refex Industries Limited (NSE: REFEX; BSE: 532884) has announced a restructuring of its financial interests in its subsidiary, Venwind Refex Power Limited (VRPL). In a regulatory filing dated April 8, 2026, the company detailed two significant financial moves aimed at optimizing the subsidiary's capital structure.

Redemption and Debt-to-Equity Conversion

The transaction involves the settlement of existing financial instruments and loans without any fresh cash infusion:

OCD Redemption: VRPL has redeemed Optional Convertible Debentures (OCDs) worth ₹3.00 Crore held by Refex Industries.

Loan Conversion: An outstanding loan of ₹4.85 Crore, previously extended by Refex Industries to the subsidiary, has been converted into equity shares.

Share Allotment: Refex was allotted 2,768 equity shares at a fair value of ₹17,523 per share (comprising a face value of ₹10 and a premium of ₹17,513).

Impact on Shareholding

As a result of this conversion, Refex Industries' ownership in VRPL has seen a marginal increase:

Previous Holding: 77.39%
New Holding: 77.77%
Net Increase: 0.38%

The primary objective of this move is to strengthen VRPL's balance sheet. By converting debt into equity, Refex Industries is improving the subsidiary's debt-to-equity ratio, thereby enhancing its financial sustainability as it prepares for future growth in the Power & Energy sector, specifically focusing on wind power.

VRPL is a relatively new entity, incorporated in December 2024, and reported nil turnover for the 2024-25 fiscal year as it establishes its operational footprint.

Source : Equity Bulls

Keywords

RefexIndustries VenwindRefexPower StakeIncrease