Inox Wind shares surge 15% on ₹900 cr fund infusion
Shares of Inox Wind, the wind energy arm of INOX Group, jumped over 15% in intraday trade on Thursday after the company informed exchanges that its promoter infused ₹900 crore into the company. The company achieved “net debt free status” with this capital infusion by its promoter, Inox Wind Energy Limited (IWEL), it says in an exchange filing today.
Cheering the news, Inox Wind shares gained as much as 15.2% to hit an intraday high of ₹164 on the BSE. Early today, the stock opened higher at ₹148, up 3.96% against the previous closing price of ₹142.35.
At the time of reporting, Inox Wind shares were quoting at ₹161.55, up 13.5%, with a market capitalisation of ₹20,756 crore. The counter witnessed strong volume as nearly 19 lakh shares changed hands over the counter as compared to two-week average of 3.85 lakh stocks.
Inox Wind shares touched its 52-week high of ₹177 on May 27, 2024, and a 52-week low of ₹40.54 on July 5, 2023. The stock has risen 290% in one year; 22.5% in six months; and 14% in a month.
In a regulatory filing this morning, Inox Wind Ltd (IWL) announced the completion of infusion of ₹900 crore into the company by its promoter Inox Wind Energy Limited (IWEL). The funds were raised by IWEL on May 28, 2024, through sale of equity shares of IWL through block deals on the stock exchanges.
“The funds will be utilised by IWL to completely pare down its external term debt to achieve a net debt free status,” the release notes.
Kailash Tarachandani, CEO of Inox Wind, says, "This fund infusion will help us become a net debt free company, strengthening our balance sheet and help accelerate our growth. We expect substantial savings in interest expenses going ahead, aiding our profitability further.”
“With all the building blocks in place, be it our execution capabilities, state-of-the-art technological offerings, financial strength, robust order book and a large order pipeline, we are geared up to embark on a substantial growth journey ahead,” he adds.
Last month, Axis Securities initiated coverage on Inox Wind with a ‘Buy’ rating and a target price of ₹185. As per the brokerage house, a series of promoter fund infusions totaling ₹2,940 crore over FY23-25 has resulted in zero interest-bearing debt for IWL, which allows it to focus on growth and execution without the burden of debt servicing.
“IWL presents a compelling investment opportunity to capitalise on the growth in India's wind energy sector. With its integrated solutions, strong order book, and sound financials, IWL is well-positioned for sustained growth and profitability,” it said in a note.
Inox Wind, a part of the $8 billion INOXGFL Group, is India’s leading wind energy solutions provider servicing IPPs, utilities, PSUs and corporate investors. It is a fully integrated player in the wind energy market with four manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh, where blades, tubular towers, as well as hubs & nacelles are manufactured.
As of March 31, 2024, IWL had an order book of 2.7 GW, providing revenue visibility for the next 2.5 years. “This diversified order book includes customers from public sector units (PSUs), independent power producers (IPPs), commercial and industrial (C&I) markets, and retail segments. The mix of turnkey and equipment supply orders underscores IWL's versatility and market reach. Additionally, multiple IPP and C&I orders are in advanced stages of closure, further enhancing the order pipeline,” the brokerage said in its report.
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