The company plans to use the funds to fully repay its external term debt, aiming for a net debt-free status.
Inox Wind shares surged 15% to Rs 164 on BSE on Thursday, driven by heavy volumes. The jump followed a Rs 900 crore fund infusion by its promoter, Inox Wind Energy, through equity share sales in block deals on May 28, 2024, involving notable investors.
By 10:54 AM, IWL traded 12% higher at Rs 159.95, outperforming the 0.16% rise in the BSE Sensex. Trading volumes surged over four-fold, with 48.28 million shares, representing 3.7% of total equity, traded on NSE and BSE. The stock had reached a 52-week high of Rs 177 on May 27.
CRISIL recently upgraded IWL’s long-term and short-term ratings for its banking facilities, citing improved business risk profile due to substantial operating performance enhancement reported by the company.
Additionally, it highlights that the company’s equity raise to reduce debt significantly enhances its financial risk profile. Looking ahead, Inox Wind benefits from a substantial net order book of 2.7 GW as of May 31, 2024, ensuring substantial revenue growth and sustained profitability, supported by favorable policies in the wind sector.
Inox Wind, India’s leading wind energy solutions provider, serves IPPs, Utilities, PSUs, and Corporate investors. With a manufacturing capacity of approximately 2.5 GW per annum and a range of 3 MW series wind turbine generators (WTGs), IWL offers comprehensive end-to-end solutions from concept to commissioning and operations & maintenance (O&M). The company manufactures key WTG components using advanced in-house technology to ensure high quality, reliability, and cost competitiveness.
Backed by strong promoter support, a healthy balance sheet, robust stakeholder relationships, and promising macroeconomic prospects, IWL is poised for a promising path of growth and profitability.
Following the announcement, Inox Wind shares surged up to 15.2% to reach a daily high of ₹164. The stock is now just 7% below its record high of ₹177, set on May 27, 2024, and has climbed 304.5% from its 52-week low of ₹40.54, recorded on July 5, 2023.
Meanwhile, Inox Wind Energy, the promoter’s stock, was locked in a 5% upper circuit at ₹7562.25. It is 6% shy of its peak of ₹8,049, achieved on April 29, 2024, and has risen 253% from its 52-week low of ₹2,139.95, hit on July 5, 2023.
Both Inox Wind and Inox Wind Energy stocks have delivered substantial returns over the past year, soaring 250% and 236%, respectively. In 2024 year-to-date, Inox Wind has gained over 27%, while Inox Wind Energy has surged 50%.
CEO’s Vision and Strategic Outlook
Kailash Tarachandani, CEO of Inox Wind, commented, “Our journey has been remarkable. This capital infusion will enable us to achieve a debt-free status, bolstering our balance sheet and accelerating our growth. We anticipate significant interest cost savings, enhancing our profitability. With our strong execution capabilities, advanced technology offerings, financial strength, robust order book, and extensive pipeline, we are well-positioned for substantial growth ahead.”
Inox Wind Limited (IWL) is India’s foremost provider of wind energy solutions, serving IPPs, Utilities, PSUs, and Corporate investors. It is a part of the $8 billion INOXGFL Group, with a legacy spanning over nine decades, primarily focused on chemicals and renewable energy. Inox Wind offers comprehensive integrated solutions in wind energy.
According to the brokerage firm, Inox Wind is poised to capitalize on India’s expanding wind sector. The company’s strengthened financial position and a robust order book of 2.7 GW across diverse customer segments are key strengths. Additionally, its operational and maintenance arm, Inox Green Energy Services Ltd., maintains strong margins exceeding 45 percent.
Axis also highlighted India’s ambitious plan to increase its wind power capacity to around 75 GW by FY32, up from the current 46 GW. Inox Wind’s technological advancements, including the transition to 3-3.3 MW turbines and progress in developing the 4.X MW WTG platform, position it well for future sector growth.
Disclaimer: The opinions and suggestions expressed above belong to individual analysts or brokerage firms, not Mint. Investors are advised to consult certified experts before making any investment decisions.
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