Inox Wind Ltd., a leading wind energy solutions provider in India, and its promoter, Inox Wind Energy Ltd., experienced significant stock price increases on Thursday following the announcement of a ₹900 crore infusion from the promoter. The funds are aimed at completely eliminating the company's external term debt, moving towards a net debt-free status, excluding promoter debt.

Key Highlights:

• Fund Infusion: Inox Wind announced the completion of a ₹900 crore infusion by its promoter, Inox Wind Energy Ltd., through the sale of equity shares via block deals on the stock exchanges. This move saw participation from several marquee investors.
• Stock Performance: Following the announcement, shares of Inox Wind surged by 15.2%, reaching a high of ₹164, just 7% below its record high of ₹177. Inox Wind's shares have risen 304.5% from their 52-week low of ₹40.54.
• Inox Wind Energy Stock: Shares of Inox Wind Energy were locked in a 5% upper circuit at ₹7562.25, 6% away from its peak of ₹8,049. The stock has surged 253% from its 52-week low of ₹2,139.95.
• Multibagger Returns: Both Inox Wind and Inox Wind Energy have delivered substantial returns over the past year, with gains of 250% and 236% respectively. Year-to-date, Inox Wind has risen over 27%, while Inox Wind Energy has jumped 50%.

CEO’s Remarks:

Kailash Tarachandani, CEO of Inox Wind, commented, "This fund infusion marks a significant milestone for us. It will enable us to become a net debt-free company, enhance our balance sheet, and accelerate our growth. We anticipate considerable savings in interest expenses, further boosting our profitability. With our strong execution capabilities, advanced technological offerings, financial robustness, and a robust order book, we are well-positioned for substantial growth."

Company Overview:

Inox Wind Ltd. is a fully integrated wind energy solutions provider serving independent power producers (IPPs), utilities, public sector undertakings (PSUs), and corporate investors. It is part of the $8 billion INOXGFL Group, which has a legacy spanning over nine decades and focuses on chemicals and renewable energy. The company manufactures and sells wind turbine generators (WTGs) and offers erection, procurement, and commissioning (EPC), operations and maintenance (O&M), and wind farm development services.

Brokerage House Coverage:

Axis Securities recently initiated coverage on Inox Wind with a buy call and a target price of ₹185. The brokerage highlighted Inox Wind's strong positioning in the growing Indian wind sector, bolstered by a robust balance sheet and an order book of 2.7 GW across various customer segments. The operational and maintenance arm, Inox Green Energy Services Ltd., also enjoys strong margins exceeding 45%.

Axis Securities noted that India's strategy to boost its wind power capacity from 46 GW to approximately 75 GW by FY32 presents significant growth opportunities for Inox Wind. The company's technological advancements, including the transition from 2 MW to 3-3.3 MW turbines and the development of the 4.X MW WTG platform, position it well for future sector growth.

Conclusion:

The ₹900 crore fund infusion by Inox Wind Energy Ltd. has significantly strengthened Inox Wind’s financial position and growth prospects, reflected in the notable rise in their stock prices. As the company continues to leverage its technological advancements and robust order book, it remains a key player in India's renewable energy sector, poised for sustained growth.