₹900 crore fund infusion! Multibagger stocks Inox Wind and Inox Wind Energy shares jump up to 15%

Shares of multibagger stocks Inox Wind and Inox Wind Energy were in demand on Thursday after the company announced an infusion of ₹900 crores by the promoter. The funds will be utilized by the firm to completely pare down its external term debt to achieve a net debt-free status, said the renewable energy company. The net debt-free status excludes promoter debt, it added.

"Inox Wind Limited (IWL), India’s leading wind energy solutions provider, today announced the completion of an infusion of ₹900 crore into the company by its promoter Inox Wind Energy Limited (IWEL). The funds were raised by IWEL on May 28, 2024, through the sale of equity shares of IWL through block deals on the stock exchanges, witnessing the participation of several marquee investors," the company stated in an exchange filing.

Post the announcement, shares of Inox Wind jumped as much as 15.2 percent to its day's high of ₹164. The stock is now just 7 percent away from its record high of ₹177, hit on May 27, 2024. Meanwhile, it has rallied 304.5 percent from its 52-week low of ₹40.54, hit on July 5, 2023.

Shares of its promoter Inox Wind Energy, on the other hand, were locked in its 5 percent upper circuit at ₹7562.25. The stock is 6 percent away from its peak of ₹8,049, hit on April 29, 2024, and has surged 253 percent from its 52-week low of ₹2,139.95, hit on July 5, 2023.

Both Inox Wind and Inox Wind Energy stocks have given multibagger returns in the last one year, soaring 250 percent and 236 percent, respectively. Meanwhile, Inox Wind has gained over 27 percent in 2024 YTD, whereas, Inox Wind Energy has jumped 50 percent.

Commenting on the fund infusion, Kailash Tarachandani, CEO of Inox Wind, remarked, "It has been a remarkable journey so far. This fund infusion will help us become a net debt-free company, strengthening our balance sheet and helping accelerate our growth. We expect substantial savings in interest expenses going ahead, aiding our profitability further. With all the building blocks in place, be it our execution capabilities, state-of-the-art technological offerings, financial strength, robust order book, and a large order pipeline, we are geared up to embark on a substantial growth journey ahead.”

Inox Wind Limited (IWL) is India’s leading wind energy solutions provider servicing IPPs, Utilities, PSUs & Corporate investors. IWL is a part of the $8 billion INOXGFL Group which has a legacy of over nine decades and is primarily focused on two business verticals - chemicals and renewable energy. Inox Wind is a fully integrated wind energy solutions provider. 

The company is engaged in the business of manufacturing and selling wind turbine generators (WTGs). It also provides erection, procurement, and commissioning (EPC), operations and maintenance (O&M), and common infrastructure facilities services for WTGs and wind farm development services.

Recently, brokerage house Axis Securities initiated coverage on Inox Wind with a buy call and a target price of ₹185.

According to the brokerage, Inox Wind is well-positioned to benefit from the growing Indian wind sector. The company's strengthened balance sheet and a robust order book of 2.7 GW across various customer segments are significant strengths. Additionally, Inox Green Energy Services Ltd., its operational and maintenance arm, enjoys strong margins exceeding 45 percent. 

Axis also highlighted India's strong strategy to boost its wind power capacity by approximately 75 GW by FY32, up from the current 46 GW. Inox Wind's technological advancements, including the shift from 2 MW to 3-3.3 MW turbines and progress in developing the 4.X MW WTG platform, position the company well for future growth in the sector, it said.

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