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Inox Green Energy Services, a subsidiary of Inox Wind, has acquired a majority stake in an undisclosed independent wind power operations and maintenance (O&M) company with above 230 MW of operating capacity, primarily in South India.
Inox Green’s first acquisition is expected to help the company expand its O&M fleet through an inorganic route.
Inox Green did not disclose the financial details of the acquisition.
The target company has experience in the wind industry and specializes in O&M of multi-brand wind filings to the turbine original equipment manufacturers and corrective maintenance services, Inox said in BSE and National Stock Exchange of India filings.
The company has a successful track record with several customers for O&M services, with maintenance contracts running up to five years.
The technical and financial strengths of Inox Green are expected to aid the target company in growing at a faster pace.
The transaction is subject to regulatory, and other customary closing conditions and is expected to conclude by the end of January 2023.
Inox Green, through acquisitions, aims to grow its business rapidly by bringing together small players, mainly from the unorganized sector, to provide the much-necessary boost to India’s wind energy market.
The announcement comes at a time when the country is working towards augmenting its wind power capacity.
According to recent data, India had installed 878 MW of wind capacity in the third quarter (Q3) of 2022, a 129% year-over-year increase.
Inox Green’s shares were listed on the BSE and the National Stock Exchange of India on November 23. The company’s IPO comprised of fresh issuance of equity shares worth ₹3.7 billion (~$44.75 million) and an offer-for-sale of ₹3.7 billion Inox Wind equity shares.
Recently, after the listing, Inox Wind and Inox Green Energy Services repaid debts of ₹1.61 billion (~$19.47 million) and ₹2.5 billion (~$30.24 million), respectively, as part of the strategic initiative to deleverage their balance sheets.
Earlier this month, the promoters Inox Wind infused ₹6.2 billion (~$74.99 million) into the company to clear the advances it received from its parent company Gujarat Fluorochemicals, to set up wind power capacity.