Inox Wind shares in focus today as EPC arm raises Rs 350 crore; key details – EQ
In Short : Inox Wind’s shares are currently in focus due to its EPC subsidiary, Resco Global Wind Services, raising ₹350 crore through a preferential allotment to marquee investors. This move marks a significant development, with Resco now ceasing to be a wholly-owned subsidiary of Inox Wind. The funds will help Resco scale up its business and capitalize on growth opportunities in India’s renewable energy sector. The company is also expanding into crane services and hybridizing power evacuation assets for new revenue streams.
In Detail : Inox Wind: Resco Global Wind Services offers EPC services for wind projects and develops common infrastructure, including power evacuation infrastructure for renewable projects.
Shares of Inox Wind Ltd are in focus on Thursday after the wind energy solutions provider said its EPC projects arm and wholly-owned subsidiary Resco Global Wind Services Private Limited (RESCO) completed fund raise of Rs 350 crore on September 11 by way of preferential allotment. The allotment was made to non-promoter investors through private placement. Following this, Resco has ceased to be a wholly-owned subsidiary of Inox Wind.
The multibagger stock is up 14 per cent in the past one month and 394 per cent in the past 12 months. On Wednesday, the scrip fell 1.3 per cent to close at Rs 238.45 on BSE.
Resco Global Wind Services offers EPC services for wind projects and develops common infrastructure, including power evacuation infrastructure for renewable projects. Inox Wind said investors who participated in the private placement included Valrado Venture Partners Fund II, Anchorage Capital Scheme I (a scheme of Anchorage Fund), JM Financials Products, Founders Collective Fund, One Up Financial Consultants, Authum Investments & Infrastructure, and Capri Global Holdings.
Axis Securities estimated Resco’s valuation at Rs 5,000 crore and suggested 7-8 per cent stake dilution. The brokerage upped its sales estimates for Inox Wind by 4-13 per cent for FY25 and FY26, Ebitda forecasts by 9-17 per cent and profit estimates by 10-22 per cent.
“Subsequently, the substation assets (non-core) housed at Inox Green Energy Ltd’s balance sheet will be demerged out of Inox Green Energy and will be merged into Resco Global thereby aligning synergies for both businesses. Post the regulatory approvals of the demerger of these power evacuation assets (substations), it will lead to the automatic listing of Resco Global,” Axis Securities said.
“Resco will utilise the substation assets to evacuate even solar power now (in addition to wind) leading to higher utilisation of these assets. The latest RE policies of multiple states allow the hybridisation of existing as well as future transmission assets, providing incremental revenues to asset owners including Resco Global,” Axis Securities noted.
Inox Wind is engaged into servicing IPPs, utilities, PSUs and corporate investors. It is a fully integrated player in the wind energy market with four manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh, where Blades, Tubular Towers, as well as Hubs & Nacelles are manufactured.
Inox Wind’s manufacturing capacity stands at 2.5 GW per annum. Its other subsidiary Inox Green Energy Services Ltd is the only listed wind O&M services company in India, with a portfolio of 3.35GW.
