Inox Wind Energy witnessed a 5 percent surge in its shares on November 1 following a significant development. The company successfully offloaded equity shares worth Rs 800 crore from Inox Wind Limited (IWL).
As a result of this transaction, Inox Wind Energy’s stake in IWL has decreased from 50.20 percent to 38.43 percent, and with effect from October 31, IWL is no longer considered a subsidiary.
As of 10:34 am, Inox Wind Energy’s shares were trading at Rs 2,901.8, marking a 0.69 percent increase on the NSE. In contrast, Inox Wind’s stock price experienced a 1.11 percent decline, settling at Rs 214.35 per share.
The transaction was carried out through block deals on the stock exchanges and attracted participation from several prominent domestic and foreign institutional investors, as disclosed by the company in an exchange filing.
The capital raised through this stake sale will be injected into Inox Wind, with the primary objective of reducing the company’s external debt and further strengthening its balance sheet.
Based on bulk deals data, Inox Wind Energy divested 3.83 crore equity shares, equivalent to 11.77 percent of the paid-up equity, in Inox Wind at a price of Rs 210.23 per share, amounting to Rs 806.48 crore.
Simultaneously, Small Cap World Fund Inc acquired 74.51 lakh equity shares in Inox Wind at an average price of Rs 211.7 per share, while ICICI Prudential Mutual Fund purchased 24.06 lakh shares at Rs 209 each. East Bridge Capital Master Fund I procured 47.84 lakh shares at the same price of Rs 209, and BNP Paribas Arbitrage acquired 23.92 lakh shares, also at a price of Rs 209 each. In total, these transactions amounted to Rs 358.03 crore.
Devansh Jain, Executive Director of INOXGFL Group, expressed, “We have taken a significant step towards our goal of achieving a net debt-free status for Inox Wind. As Inox Wind embarks on its next phase of growth, underpinned by India’s Renewable Energy targets, its robust financial position, and strong execution capabilities, we have ensured that all the levers required to scale up operations are in place.”
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