Inox Green Energy, Inox Wind shares gained up to 6% today; here's why

Inox Green Energy Services Ltd and its promoter Inox Wind Ltd saw their shares rising up to 6 per cent in Thursday's trade, as INOXGFL Group emerged as a successful bidder for the acquisition of the IPP and O&M businesses of Wind World India through the National Company Law Tribunal (NCLT)-approved resolution process. 
In exchange filings, the companies said the acquisition will be through Inox Clean Energy’s subsidiary Inox Neo Energies and Inox Green Energy Services Limited, respectively.

Shares of Inox Green Energy climbed 6.46 per cent to hit a high of Rs 186.95 on BSE. Inox Wind rose 1.31 per cent to hit a high of Rs 100.25 apiece. Inox Wind held 51.13 per cent stake in Inox Green Energy at the end of December quarter.

Under the transaction, Inox Clean, a renewable energy platform engaged in developing, owning and operating utility-scale wind, solar and hybrid assets, will acquire Wind World India’s Independent Power Producer (IPP) portfolio through its subsidiary Inox Neo. Inox Green will acquire Wind World India’s Operations & Maintenance (O&M) arm. 

"Wind World India has manufacturing, IPP and O&M operations. Wind World India, directly and through its subsidiaries, has a combined installed IPP capacity of approximately 600 MW, with wind farms spread across seven key wind-rich states: Karnataka, Maharashtra, Tamil Nadu, Rajasthan, Gujarat, Madhya Pradesh and Andhra Pradesh," Inox Green said.

Additionally, Wind World India’s O&M portfolio stands at nearly 4.5 GW, servicing a marquee client base that includes leading corporates such as the Tata Group, ReNew, Greenko Group, Apraava Energy and Hindustan Zinc, amongst others, it noted.

With this acquisition, Inox Clean will expand its IPP portfolio with operational wind assets across key wind corridors. 

"Inox Clean is setting new growth benchmarks and has established a solid base to achieve its medium-term targets of 10 GW of installed IPP capacity and 11 GW of integrated solar manufacturing capacity by FY28," it said.

Executive Director at INOXGFL Group, Devansh Jain, said: "This acquisition marks another decisive step in expanding our O&M portfolio under Inox Green and strengthening our integrated renewable energy platform under Inox Clean. By adding high-quality operational wind assets to our IPP portfolio and significantly expanding our O&M scale, we are deepening our presence across the wind value chain."

Group CFO Akhil Jindal said the transaction is strategically timed and falls within our valuation framework. The addition of operational IPP assets will enhance the group recurring revenue profile, while the expansion of the O&M portfolio may further strengthen Inox Green’s annuity-driven revenues and profitability, he said.

"We remain focused on prudent capital allocation, operational efficiency and sustained cash flow generation as we scale,” he added.