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MUMBAI : Wind turbine maker Inox Wind Ltd is looking to raise capital via a stake sale to private equity investors, or an initial public offering, of its operations and maintenance (O&M) subsidiary, said two people aware of the development.

Inox Wind is a fully integrated player in the wind energy market and makes key components of wind turbine generators (WTGs) in-house.

“The company has already started talks with some private equity investors for a stake sale in the O&M business—Inox Wind Infrastructure Services Ltd (IWISL). This could be in the form of a controlling stake sale or a minority stake sale depending on the valuation they are able to get. The company is looking at a valuation of about 3,000-3,500 crore for the O&M business," said one of the people cited above, requesting anonymity.

“Inox is also exploring an IPO of the business. It all depends on where they get the best valuation," he added.

Inox has multi-year O&M agreements with customers. The O&M revenue earning wind turbine portfolio of the company stands at 1,514MW. “O&M revenue is non-cyclical, higher margins and provides steady cash flows, making it an attractive business for investors. The company has an order book of 1.3GW, to be supplied over the next two years, which will increase the revenues of the O&M business," he added. An email sent to Inox Wind did not elicit a response till press time.

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