Shares of Inox Wind settled around 3 percent lower on October 31 after plunging over 7 percent in the opening hours after the company's promoter offloaded 12.8 percent stake through two large deals on the exchanges.
Around 3.2 crore shares or a 10 percent stake in the company changed hands on the exchanges in the morning at an average price of Rs 210 apiece, reflecting an over 6 percent discount to the October 30 closing price of Rs 223.65.
The total deal value was around Rs 672 crore. Another block deal worth involving 92 lakh shares or a 2.8 percent stake in the company took place in the afternoon session.
The company stated in an interaction with CNBC-TV18 that the promoter Inox Wind Energy sold some stake in the two deals. In total, the company raised over Rs 800 crore through the two deals.
Post the deal, Inox Wind Energy's stake in the company will reduce to 40.2 percent from the earlier 50.15 percent. Total promoter holding in the company now stands at around 55 percent.
Moreover, the company also stated that the entire proceeds from the large deal will be infused in Inox Wind to pare down its debt. The company's current net debt sits at Rs 1,150 crore and proceeds from the deals along with internal accruals will allow Inox Wind to turn debt free by the end of the fiscal.
On October 31, shares of Inox Wind were settled around 3 percent lower at Rs 216.75 on the NSE, sharply off its day's low of Rs 207.60.
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The large deal also triggered a spike in volumes as 7 crore shares changed hands on the exchanges, significantly higher than the one-month daily traded average of 18 lakh.
Meanwhile, the promoters are not looking towards paring any more stake as Inox Wind doesn't require any more capital after turning debt-free, the company stated in the interaction.
The management of Inox Wind is also enthused by the quality of foreign institutional investors that have entered the stock through the stake sale. The firm stated that strong marquee names along with some domestic funds have also come in through the stake sale.
The company currently remains focused on the Indian market and expects multiple deals form both PSU and private sectors. "Government targets are clear, 10-GW of plain vanilla auctions have been announced," Inox Wind highlighted in the interaction.
Shares of Inox Wind were also involved in a block deal back in early August when the company's promoters Inox Wind Energy and Devansh Trademart LLP offloaded 1.46 crore shares and 93.48 lakh shares, respectively. The average selling price for the total 7.36 percent stake was Rs 208 apiece.
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