Inox Green to divest 100% stake in Nani Virani Wind Energy, stock down 2%

Shares of Inox Green Energy Services fell over 2% on Monday after the company signed a term sheet for divestment of 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 divestment is part of the strategic decision taken by the company to become net debt-free. Inox Green Energy Services shares were trading at Rs 65.67, down half a percent on BSE at 10:50 am on October 9, 2023.

According to Inox Green Energy, the divestment will further enable the company to become an asset-light annuity O&M business. Consequently, this 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," the company said in a regulatory filing.

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Company's CEO S K Mathusudhana 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."