Inox Wind nosedives 10% after promoter offloads 5% stake via block deal

On May 28, Inox Wind witnessed a block deal involving a certain percentage stake in the company. According to sources cited by CNBC Awaaz on May 27, Inox Wind's promoter entity, Inox Wind Energy, was planning to sell up to 5% of its equity through a block deal.

Inox Wind shares plummet by 9.1% to ₹149.30, experiencing a meager 13% growth since the start of 2024. Despite the recent decline, Inox Wind shares have surged by over 350% in the past year. The transaction was finalized at ₹151 per share, representing a significant discount of more than 8% compared to the stock's prior closing price.

A significant 5% of the company's outstanding shares, amounting to approximately 2.75 crore shares, were traded in a block transaction on the stock exchanges. The average price per share in the block deal stood at ₹151, resulting in a total transaction value exceeding ₹400 crore.

According to CNBC Awaaz, Inox Wind Energy Ltd. (IWEL), the promoter of Inox Wind, was planning to sell up to 5% of the company's equity. The deal, which was expected to take place between ₹148 and ₹150 per share, was reported by CNBC Awaaz on Monday evening, citing sources.

At the end of the March quarter, Inox Wind Energy Ltd. had a 38.43% ownership in the company. When combined with other promoter entities, the total promoter group stake reached 52.87%. If the promoter entity is indeed the seller, the promoter group's ownership in Inox Wind will drop below 50%.

Following the announcement of a sharply discounted stake sale, the company's shares experienced a negative reaction, plunging 10% to an intraday low of ₹147.75 on the NSE. This decline occurred shortly after the market opened on May 28.

Revenue for the wind energy solutions provider more than doubled to ₹527.7 crore in the first quarter of this year, leading to a ₹36.7 crore net profit. This compares to a ₹119 crore net loss in the same period last year.

During the quarter, the company secured a significant wind project order of 1,500 MW from a major power utility, making it their largest single wind project order to date. This addition significantly bolstered their already robust order book, which now stands at 2.7 GW. With this strong order book, the company anticipates a revenue potential of ₹18,000 crore.

Inox Wind Ltd (IWL), a subsidiary of Gujarat Fluorochemicals Ltd, is a provider of wind energy solutions to independent power producers (IPPs), PSUs, utilities, corporates, and retail investors.

The company specializes in wind energy solutions, encompassing both the manufacturing and marketing of wind turbine generators. They offer a comprehensive suite of turnkey services, including wind resource assessment, site acquisition, project development, power evacuation, erection and commissioning, statutory approvals, and long-term operations and maintenance for wind power projects. Furthermore, they provide assistance in the development of wind farms. The company operates advanced manufacturing facilities in Gujarat, Himachal Pradesh, and Madhya Pradesh. Headquartered in Noida, Uttar Pradesh, India, IWL is a leading force in the wind energy sector.