This S&P BSE Smallcap Stock announced that it will divest 100% of a subsidiary and use the proceeds toward reducing debt. The company has a market cap of Rs. 6,899 crore and is 6% away from its 52 week high, trading at Rs. 211.65 versus Rs. 209.85 at previous close.
The stock is seeing volumes that are over 1.7x the monthly average, trading 7% and 50% respectively above its 20 day and 200 day moving averages.
In a filing dated 9th October 2023, Inox Wind Ltd (“Inox Wind”) stated that it’s subsidiary Inox Green signed a term sheet to divest 100% stake in Nani Virani SPV. The SPV, which is a 50 MW operational wind farm located in Gujarat, was commissioned in May’23. The divestment is part of the strategic decision taken by the company to become net debt-free, further enabling Inox Green to become an asset-light annuity O&M business.
Consequently, this will also aid in paring debt on Inox Green’s parent company Inox Wind’s consolidated balance sheet. The transaction will consummate post customary regulatory and banking approvals, including Board and shareholders’ approvals.
Kailash Tarachandani, CEO of Inox Wind, commented on the subject “This transaction has significant beneficial impact on both Inox Wind and Inox Green. While Inox Green achieves its target to become net debt-free, Inox Wind’s balance sheet will deleverage substantially, reinforcing the company’s financial strength. We remain focused and committed on strengthening Inox Wind’s performance on all fronts and improve our profitability as we proceed on our exciting journey ahead.”
Inox Wind is the top provider of wind energy solutions for IPPs, utilities, PSUs, and corporate investors in India. IWL is a part of the USD $5 Billion INOXGFL Group, which has a history spanning more than nine decades and is primarily focused on the chemicals and renewable energy industries.
Complete end-to-end solutions, from conception to commissioning, are products and services that are provided by Inox Wind. Inox Wind also provides services such as wind resource assessment, site acquisition, infrastructure development, erection and commissioning, and long-term O&M of wind power projects in addition to manufacturing and supplying WTGs.
Written by Sandeep R
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