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.”

Inox Green Energy stock performance, technicals

Inox Green Energy Services share price has surged over 38 percent so far in 2023. In the past one year, the stock has risen nearly 10 percent on the BSE. In terms of technicals, the relative strength index (RSI) of IGESL stands at 50.9, implying that it’s trading neither in the overbought nor in the oversold territory.

Shares of Inox Green Energy Services are trading higher than the 5-, 10-, 100-, and 200-day moving averages. Its debt to equity ratio is healthy at 0.53, implying that its assets are financed mainly through equity, according to Trendlyne data.

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