Block Deal: Inox Wind stock hits 10% lower circuit as 1.69 crore shares change hands

Multibagger stock Inox Wind was locked in the 10 percent lower circuit at ₹147.65 after a 5 percent stake in the firm changed hands via a block deal at a floor price of ₹151, a discount of 8 percent from the previous close. The stock has rallied 460 percent in the last 1 year.

According to media reports, approximately 1.69 crore shares of the firm were traded, resulting in a turnover of ₹257.61 crore on the BSE. The identities of the buyers and sellers have not been disclosed. However, it is suggested that promoter entity Inox Wind Energy was likely the seller, as it planned to divest up to 5 percent of its stake in the wind energy solutions provider through block deals today.

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In the March 2024 quarter, Inox Wind Energy held a 38.43 percent stake in the company. This stake is expected to decrease to 33.43 percent following the sale. Additionally, other promoter groups held significant stakes: Aryavardhan Trading LLP with 5.23 percent, Inox Leasing and Finance Limited with 5.02 percent, and Devansh Trademart LLP with 4.19 percent.

The stock hit its record high of ₹177 in the previous session, May 27. Despite today's fall, the stock is trading over 415 percent higher than its 52-week low of ₹28.66, hit on May 29, 2023.

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Just in 2024 YTD, the scrip has advanced over 18 percent, giving positive returns in 2 of the 5 months so far. It has lost almost 6 percent in May after an over 20 percent gain in April. Before this it shed 13.5 percent in March, rose 26 percent in February and fell over 4 percent in January this year.

In the March quarter, the wind energy solutions provider reported a consolidated net profit of ₹36.7 crore, a significant turnaround from the net loss of ₹119 crore in the same quarter the previous year. Revenue more than doubled, reaching ₹527.7 crore. Further, EBITDA turned positive, reversing a ₹25 crore loss in the same period last year. The company's robust order book of approximately 2.7 GW provides substantial visibility for future revenue growth.

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Commenting on the results, Kailash Tarachandani, CEO of Inox Wind, said, “Q4 has been a milestone quarter for the company as we successfully transitioned to 3 MW WTG supplies from 2 MW WTGs. Our EBITDA run rate in Q4 places us on a strong footing for FY25. Our debt levels have also come down drastically and we expect to be net debt free within H1 FY25. The macro tailwinds are reflected in the strong orderbook which stands at 2.7 GW today. Our other initiatives including ramping up operations, strengthening our balance sheet, coupled with our large order book, will translate into higher order execution from FY25 onwards, resulting in strong growth in profitability.”

During the quarter, the company secured its single-largest wind project order of 1,500 MW from a leading power utility, significantly boosting its already robust order book of 2.7 GW. The company's strong order book currently holds a revenue potential of ₹18,000 crore.

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Inox Wind is one of India's leading wind energy solutions providers, serving Independent Power Producers (IPPs), utilities, Public Sector Undertakings (PSUs), corporates, and retail investors. As a fully integrated player in the wind energy market, Inox Wind operates three state-of-the-art manufacturing plants located in Gujarat, Himachal Pradesh, and Madhya Pradesh, with a cumulative manufacturing capacity of 1,600 MW.

The company manufactures key components of the Wind Turbine Generator (WTG) to ensure high quality, reliability of performance, and cost competitiveness, leveraging the most advanced technology. Inox Wind's WTGs are specifically designed for low wind speed sites, which are common in India.