Inox Green Energy to divest 100% stake in Nani Virani Wind; stock down

Inox Green Energy Services (IGESL), India’s leading wind power operations and maintenance (“O&M”) service provider, has signed a term sheet for divestment of a 100% stake in Nani Virani Wind Energy Private Limited SPV. The SPV, which is a 50 MW operational wind farm located in Gujarat, was commissioned in May 2023.

The company says the divestment is part of the "strategic decision" taken to become net debt-free, enabling IGESL to become an asset-light annuity O&M business.

Consequently, it says the divestment will also help in paring debt on IGESL’s parent company Inox Wind’s consolidated balance sheet. The transaction will be completed after regulatory and banking approvals, including board and shareholders’ approvals.

SK Mathusudhana, CEO of IGESL, says the company had set 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 a focus on continuously improving its performance and profitability," says the company.

Inox Green Energy Services Ltd claims to be one of the major wind power operations and maintenance (“O&M”) service providers in India, with a fleet size of less than 3 GW. The company is in the business of providing long-term O&M services for wind projects and is a subsidiary of Inox Wind Ltd, with whom it enjoys a synergistic relationship.

The Inox Green Energy Services stock, meanwhile, dipped 1.08% to ₹65.30 on the BSE today. The shares opened a gap up at ₹65.05 and surged to ₹66.49 during the intra-day trade. At the current share price, the m-cap of the company stands at ₹1,921.06 crore. The stock touched its 52-week high of ₹76.48 on August 10, 2023.

Inox Green Energy made its debut on Dalal Street in November 2022. Formed in 2012, the company is engaged in the business of providing long-term O&M services for wind projects, specifically the provision of O&M services for wind turbine generators (WTGs) and the common infrastructure facilities such as pooling stations and transmission lines, which support power evacuation from such WTGs.

The company is one of the major wind power O&M service providers in India. Its portfolio includes 3,034 MW of projects, with 5-20 years of O&M contracts. The total order book of IWL is 1,178.7 MW, and its revenue for year ending March 2023 stood at ₹247.52 crore. The company operates in eight wind-resource rich states of the country.