3:1 Bonus Share: Suzlon peer company’s debt-free multibagger stock to keep under radar as the company signs a consortium agreement with banks for Rs 2,200 crore
The stock gave multibagger returns of 435 per cent in just 1 year and a whopping 2,600 per cent in 5 years.
Suzlon peer company; Inox Wind has secured a significant financial boost with a consortium agreement for Rs 2,200 crore from a group of 10 banks led by ICICI Bank. This substantial line of credit, which is likely to increase to Rs 2,400 crore, is a testament to the company's financial strength and operational performance. Notably, the limits have been extended without any corporate guarantees or external support, demonstrating the banking community's confidence in IWL's ability to meet its financial obligations. As a result of this arrangement, any existing corporate guarantees provided by GFL will be phased out, further solidifying Inox Wind's financial independence and positioning it for continued growth in the wind energy sector.
Letter of Intent (LoI): Inox Wind Limited (IWL), India’s leading wind energy solutions provider, has received a Letter of Intent (LoI) from IGREL Renewables Ltd (IGREL) for the execution of 550 MW wind capacity on a turnkey basis. As part of the project, Inox Wind will supply, install and commission the Wind Turbine Generators (WTGs), and provide multi-year comprehensive operations & maintenance (O&M) services post-commissioning. The project will be executed over the next 24 months across multiple sites in the states of Gujarat, Rajasthan and Madhya Pradesh. The 550 MW LoI is over and above the firm order of 200 MW received in the past and takes IWL’s orderbook to > 3.5 GW.
Debt-Free Update: IWL announced the completion of an infusion of Rs 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 funds will be utilised by IWL to completely pare down its external term debt to achieve a net debt-free status wherein the net debt-free status excludes promoter debt.
bonus Update: Earlier the shares of the company ex-traded bonus shares of 3:1 (three bonus equity shares for every one existing equity share) out of the accumulated reserves of the company. The company announced the revised record date was Friday, May 24, 2024.
DSIJ's DSIJ's ‘Mid Bridge’ service recommends well researched mid-cap stocks for smart investing. If this interests you, do download the service details here.
Results: According to Quarterly Results, the net sales increased by 83.2 per cent to Rs 638.81 crore in Q1FY25 compared to a net sales of Rs 348.73 crore in Q1FY24. The company reported a net profit of Rs 47.17 crore compared to a net loss of Rs 64.88 crore in Q1FY25, an increase of 173 per cent. In its annual results, the net sales increased by 137.8 per cent to Rs 1,743.24 crore in FY24 compared to FY23. The company reported a net loss of Rs 50.79 crore in FY24 compared to a net loss of Rs 696.84 crore in FY23.
About the Company
Inox Wind, a subsidiary of INOX Group, manufactures wind turbines and offers complete solutions for wind farms in India. Focused on innovation and sustainability, they aim to be a major player in India's renewable energy shift.
The company has a market cap of over Rs 33,000 crore with a 3-year stock price CAGR of 115 per cent. The company’s order book is Rs 3,500 MW as of September 18, 2024. FIIs bought 5,09,17,521 shares and increased their stake to 13.37 per cent compared to 9.47 per cent in March 2024. The stock gave multibagger returns of 435 per cent in just 1 year and a whopping 2,600 per cent in 5 years. Investors should keep an eye on this multibagger stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.