Inox Green hits new high; stock zooms 55% over preferential issue price

Inox Green's board had allotted 28.98 million shares on preferential basis to its promoters and non-promoters, at an issue price of Rs 138 per share, which amounted to a total of Rs 400 crore.

Shares of Inox Green Energy Services (IGESL) hit a new high of Rs 214.40, as they rallied 9.5 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes. The stock zoomed 55 per cent compared to the preferential issue price of Rs 138 per share.

At 02:56 pm; IGSL was quoting 7 per cent higher at Rs 210.35, as compared to the 0.17 per cent gain in the BSE Sensex index.

Moreover, the average trading volumes of the company's shares has more than doubled so far. A combined 16.78 million shares, representing 4.6 per cent of total equity of IGSL, have changed hands on the NSE and BSE.

IGESL is India's leading wind operating and maintaining (O&M) services player with 3.35 GW of assets under management. The company plans to almost double its portfolio to 6GW from 3.35 GW currently through a mix of organic and inorganic growth.

IGESL is India’s only listed pure-play renewable O&M service company. The company raised Rs 1,050 crore through a mix of shares and warrants issued on a preferential basis to promoters and other marquee investors.

On August 2, 2024, the board of Inox Green had allotted 28.98 million equity shares at an issue price of Rs 138 per equity share, amounting to a total of Rs 400 crore, on a preferential basis to its promoters and non-promoters.

The board had also allotted 44.83 million convertible warrants, at an issue price of Rs 145 per convertible warrant, upon receipt of upfront payment of 25 per cent of the issue price, aggregating to Rs 162.50 crore.

The renewable energy company allotted equity shares to non-promoters, including Ashish Kacholia (1.45 million or Rs 20 crore), Forbes EMF, Foreign Portfolio Investor (3.62 million or Rs 50 crore) and Mahindra Manulife Small Cap Fund, Mutual Fund (2.39 million or 33 crore).

IGESL provides Long-term O&M services for wind farm projects, wind turbine generators (WTGs) and the common infrastructure facilities on the wind farm which support the evacuation of power from WTGs.

The board of IGESL has appointed valuers and consultants to advise on the demerger of common infrastructure from Inox Green and merge the same into Resco Global.

Post evaluation of reports submitted by them, and subject to the board's approval, the demerger would lead to the consequential listing of Resco. The proposed demerger will result in a cleaner and asset light balance sheet for the company.

Around 80 GW of wind capacity is expected to be added in the country in the next eight years as per the National Electricity Plan. This provides visibility of more than Rs 6 trillion for wind energy OEMs, and provides a large multi-year opportunity for O&M service providers.

Draft proposal of domestic content requirement for wind turbines by NITI Aayog may lead to further consolidation of suppliers in the domestic market.

According to the company's Q1FY25 investor presentation, India’s green hydrogen production target of 5 mmtpa is expected to require an incremental addition of 125 GW of RE capacity (solar & wind) every year.