Inox Wind shares in focus as promoters infuse Rs 500 crore for repayment of debt

Shares of Inox Wind will be in focus on Thursday morning after the wind energy solutions provider said its promoters and promoter group entities infused Rs 500 crore (before taxes and other charges) in the company . In a filing before the market hours, Inox Wind said the strategic move marks a significant milestone in Inox Wind's journey towards financial sustainability. The funds were raised by way of equity share sale of Inox Wind by its promoter and promoter group entities through block deals on the stock exchanges.

The funds will be utilised for the repayment of Inox Wind's existing debt.

CEO of Inox Wind Kailash Tarachandani said: "The recent fundraising initiative led by Inox Wind's promoters and the subsequent capital infusion significantly reinforces our financial strength and empowers us with enhanced flexibility for future growth endeavours. The unwavering commitment, which our long-term investors have shown in Inox Wind, stands as a testament to their trust and confidence in the company."

The company said Rs 500 crore raised by promoter entities through equity share sale is a significant step towards becoming net-debt free.

On Wednesday, Inox Wind shares closed at Rs 198.45 on BSE, down 1.34 per cent.

Inox Wind is engaged in manufacturing and selling Wind Turbine Generators (WTGs) and Erection, Procurement & Commissioning (EPC)services. It provides services in operations & maintenance (O&M), common infrastructure facilities for WTGs, and wind farm development through its subsidiary, Inox Green.

Its four manufacturing facilities are located in Gujarat, Madhya Pradesh, and Himachal Pradesh, which have a cumulative capacity of 1.6GW (for its 2MW WTGs).

"The addition of a new and more efficient 3.3MW WTG to its product portfolio would catapult its total manufacturing

capacity to above 2GW. The management is upbeat on recent policy changes in the sector, and believes the government’s renewed thrust on adding capacities in India would help the company turn around its profitability," Systematix Institutional Equities said in a July 22 note.

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