Inox Green embarks on inorganic growth journey through its first acquisition

Inox Green, India's leading wind power operations and maintenance ("O&M") service provider, has signed a term sheet for acquisition of majority stake in a renowned Independent O&M Wind Service Provider ('Target Company') with a 230+MW fleet that operates majorly in South India. This acquisition is a part of the strategic decision taken by the company to grow its fleet through the inorganic route as well. The inorganic route provides a large growth opportunity for the company to grow its business rapidly as a large part of the operating fleet in India is currently being managed by the unorganized sector. The transition pain in the sector over the past four years saw the growth of the smaller players from the unorganized sector. The inorganic growth that we have embarked upon is favorable for all stakeholders; the wind farm owner, the current O&M provider and us. Inox Green is actively pursuing inorganic growth opportunities along with the rapid growth that it envisages from the organic route as well.

The Target Company is having a deep & rich experience in wind industry and specializes in O&M of multibrand wind turbine OEMs and provides comprehensive O&M services as well as specialized corrective maintenance services. The Target Company has a proven successful track record with several customers for O&M services with maintenance contracts running up to 5 years.

With this acquisition, Inox Green enters multi brand OEM wind turbine O&M business and will be well positioned to serve customers by leveraging the synergies and efficiencies across the combined teams, supply chain capabilities and technical expertise. The technical and financial strengths of Inox Green will aid the target company to grow at a faster pace. The transaction is subject to certain regulatory and other customary closing conditions and is expected to conclude by end of Jan 2023.

Shares of Inox Green Energy Services Limited was last trading in BSE at Rs. 40.75 as compared to the previous close of Rs. 45.00. The total number of shares traded during the day was 132072 in over 1565 trades.

The stock hit an intraday high of Rs. 44.45 and intraday low of 40.50. The net turnover during the day was Rs. 5525999.00.

Source : Equity Bulls

Keywords

InoxGreenEnergyServices INE510W01014 Utilities TermSheet Acquisition WindServiceProvider SouthIndia