Inox Wind shares zoom 14% to hit one-year high as co shares update on capital infusion

Shares of Inox Wind Ltd (IWL) rose sharply in Monday's trade after the company shared a business update on its capital infusion. The firm said it has completed infusion of Rs 800 crore by its promoter Inox Wind Energy Ltd (IWEL). The stock today 14.02 per cent to hit a 52-week high of Rs 328.20 in early deals. It was last seen trading 9.81 per cent higher at Rs 316.10. At this price, the multibagger counter has soared 190 per cent on a year-to-date (YTD) basis and 129.06 per cent in the last six months.

"On October 31, 2023, IWL's promoter, IWEL, completed the successful fund raise of Rs 800 crore through an equity share sale of IWL on the stock exchanges, facilitated via block deals, witnessing participation of several marquee long-only foreign and domestic investors. The funds received will be utilized to repay IWL's existing debt," Inox stated.

Kailash Tarachandani, Inox Wind CEO, said, "The recent round of fundraising by IWL's promoter and the subsequent capital infusion into IWL is another significant step towards our stated objective of becoming a net-debt free company. The ongoing ramp up of our operations, technological upgrade to the globally established 3.3 MW WTGs and our strong financial position will help us embark on a robust growth journey, aided by the macro tailwinds."

In an interaction with Business Today TV, Ashish Chaturmohta, Executive Director and Fund manager at JM Financial, said he liked Inox Wind from the power and energy space.

On technical setup, the counter was last seen trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 80.52. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 39.85 against a price-to-book (P/B) value of 4.26.

The scrip has an analyst target price of Rs 262, Trendlyne data showed, suggesting a potential upside of 17 per cent in a year.

As of September quarter, promoters held 64.64 per cent stake in the power firm.

 

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

 

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