In a significant move aimed at bolstering its financial capabilities, Inox Green Energy Services has announced plans to raise up to Rs 1,050 crore through a combination of equity shares and convertible warrants. This decision was ratified by the company’s board of directors during a recent meeting, marking a strategic initiative to fuel growth and expansion in the renewable energy sector.
Fundraising Breakdown
The approved fundraising strategy entails issuing approximately 2.89 crore equity shares at a price of Rs 138 per share, which includes a premium of Rs 128 per share. This issuance is set to generate around Rs 400 crore and will be directed towards non-promoter entities, aiming to broaden the company’s investor base and enhance liquidity.
Additionally, Inox Green Energy Services plans to issue over 4.48 crore convertible warrants, with each warrant granting the right to subscribe to one equity share at a price of Rs 145 per warrant. This includes a premium of Rs 135 per warrant and is slated to raise up to Rs 650 crore. The convertible warrants will be offered in one or more tranches, catering to both promoter/promoter group and non-promoter entities.
Business Focus and Market Response
As a subsidiary of the INOX GFL Group, Inox Green Energy Services specializes in providing operation and maintenance services, along with common infrastructure facilities for wind turbine generators. This strategic focus aligns with India’s burgeoning renewable energy sector, which continues to witness robust growth and investment.
Following the board’s approval of the fundraising plan, Inox Green Energy Services’ stock demonstrated strong investor confidence, closing 5.09% higher at Rs 180.50 per share on the BSE. This uptick reflects positive market sentiment towards the company’s growth prospects and strategic initiatives in the renewable energy domain.
Implications for Investors
For investors, the planned fund raise presents an opportunity to participate in the expansion of Inox Green Energy Services amidst a favorable regulatory environment for renewable energy in India. The issuance of equity shares and convertible warrants not only aims to strengthen the company’s financial position but also positions it strategically to capitalize on emerging opportunities in the renewable energy sector.
