Inox Wind Energy soars 5% on raising Rs 800 crore from stake sale in Inox Wind

Inox Wind will use funds raise to pare down external debt.

Shares of Inox Wind Energy zoomed 5 percent on November 1 after the company offloaded equity shares worth Rs 800 from Inox Wind Limited (IWL).

Following the transaction, Inox Wind Energy’s stake in IWL has decreased from 50.20 percent to 38.43 percent and IWL ceased to be a subsidiary with effect from October 31.

As of 10.34am, the shares of Inox Wind Energy traded at Rs 2,901.8, higher by 0.69 percent, on the NSE, while the Inox Wind stock price slipped 1.11 percent to Rs 214.35 per share.

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The transaction was executed through block deals on the stock exchanges and witnessed  participation by several marquee long-only domestic and foreign institutional investors, said the company in an exchange filing.

The funds raised will be infused into Inox Wind and subsequently utilised to pare down the company's external debt, firming up its balance sheet further.

As per bulk deals data, Inox Wind Energy sold 3.83 crore equity shares, which is equivalent to 11.77 percent of paid-up equity, in Inox Wind at a price of Rs 210.23 per share, amounting to Rs 806.48 crore.

However, Small Cap World Fund Inc has bought 74.51 lakh equity shares in Inox Wind at an average price of Rs 211.7 per share, ICICI Prudential Mutual Fund bought 24.06 lakh shares at Rs 209 each, East Bridge Capital Master Fund I bought 47.84 lakh shares at Rs 209 each, and BNP Paribas Arbitrage picked up 23.92 lakh shares at a price of Rs 209 each. In total, it amounted to Rs 358.03 crore.

"We have taken a large 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," Devansh Jain, executive director of INOXGFL Group, said.