Inox Wind plans to get net debt-free after promoter injects ₹900 Crore

4 Jul 2024 , 01:12 PM

Inox Wind’s stock was trading significantly higher on Thursday, July 4, following the company’s announcement that its promoter, Inox Wind Energy Ltd. (IWEL), has invested ₹900 Crore in the business.

Following this development, the company’s counter rose to an intraday high of ₹164.

On May 28, 2024, Inox Wind Energy raised money by selling equity shares of Inox Wind Ltd. through stock market block trades.

In a block deal in May 2024, some 2.75 Crore shares, or 5% of the company’s total equity, were exchanged. The shares were traded for an average of ₹151 a share, resulting in a transaction value of almost ₹400 Crore.

Inox Wind Ltd. stated in a regulatory filing that it will use the money to pay off all of its external term debt and become debt-free.

According to Inox Wind CEO Kailash Tarachandani, the company will strengthen its balance sheet, accelerate expansion, and become net debt-free with the support of this funding infusion.

Inox Wind Energy Ltd. has a 38.43% stake in the business as of the March 2024 quarter. With regard to other promoter entities, the promoter group’s ownership position in the company was 52.87%. The promoter share in Inox Wind will drop below the 50% threshold if the promoter entity is, in fact, the seller.

Going forward, the company anticipates significant savings in interest costs, which will increase our profitability even more. It is prepared to start a significant growth journey since it has all the necessary components in place, including our execution skills, cutting-edge technology offerings, financial stability, solid order book, and sizable order pipeline, according to Tarachandani.

At around 1.06 PM, Inox Wind was trading 12.28% higher at ₹159.97, against the previous close of ₹142.48 on NSE.

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