Inox Green Inks Term Sheet To Divest 100% Stake In Nani Virani SPV, Shares Fall Over 2%

The share price of Inox Green Energy Services Ltd traded in the red on Monday after the company informed that it has inked 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'23.

Today, Inox Green Energy shares were spotted trading 2.14% lower at Rs 64.60 per share at 12:31 pm IST. The stock has a 52 52-week high and 52-week low of Rs 76.48 and Rs 38.50 a piece. The stock's year-to-date (YTD) performance is up 38%.

According to the company, the divestment is part of the strategic decision taken by the company to become net debt-free, further enabling IGESL 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, said the company.

Commenting on this divestment, S K Mathusudhana, CEO of IGESL, 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 a focus on continuously improving its performance and profitability."

Inox Green Energy Services Limited, a subsidiary of Inox Wind Limited is one of the major wind power operations and maintenance ("O&M") service providers within India with a fleet size of >3 GW. The Company is engaged in the business of providing long-term O&M services for wind projects. IGESL is a part of the INOXGFL Group.