Shares of Inox Green Energy Services Ltd (IGESL) rose 6% in early trade after the firm on October 9 said it has inked a term sheet for divestment of 100% stake in Nani Virani Wind Energy Private Limited SPV. The divestment is part of the strategic decision taken by the company to become net debt-free, further enabling IGESL to become an asset-light annuity O&M business.
Inox Green Energy shares rose 6.08% to Rs 68.72 against the previous close of Rs 64.78 on BSE. Market cap of the firm rose to Rs 2,011.20 crore in early deals today. Total 1.90 lakh shares changed hands amounting to a turnover of Rs 1.28 crore on BSE. The stock has risen 44% this year and gained 72% in six months.
In terms of technicals, the relative strength index (RSI) of Inox Green Energy shares stands at 46.3, signaling it's trading neither in the overbought nor in the oversold territory. Inox Green Energy shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
The wind power operations and maintenance service provider said the SPV, which is a 50 MW operational wind farm located in Gujarat, was commissioned in May 2023. The divestment will also aid in paring debt on IGESL’s parent company Inox Wind’s consolidated balance sheet.
The transaction will consummate post customary regulatory and banking approvals, including Board and shareholders’ approvals.
SK Mathusudhana, CEO of IGESL said, “We are pleased to announce a significant milestone in the journey of IGESL. We had set ourselves a target to be net debt-free by the end of FY24 and with this transaction we will achieve this goal. IGESL is on a massive growth journey with focus on continuously improving its performance and profitability.”
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