Inox Green Energy Services (IGESL), an Inox Wind subsidiary, has signed a term sheet to divest its 100% stake in Nani Virani Wind Energy, a special purpose vehicle operating a 50 MW wind farm in Gujarat, aiming to cut its debt and enhance profitability.

The divestment, amounting to ₹3 billion (~$36 million) that IGESL had borrowed to develop the Nani Virani wind project, is expected to help IGESL transition to an asset-light operation and maintenance business.

The transaction is contingent on securing regulatory and banking approvals.

Kailash Tarachandani, CEO of Inox Wind, while emphasizing mutual benefits for both companies, said, “We remain focused and committed to strengthening Inox Wind’s performance on all fronts and improving our profitability as we proceed on our exciting journey ahead.”IGESL’s subsidiary, I-Fox Windtechnik India, recently clinched a five-year, ₹400 million (~$4.8 million) O&M contract for NLC India’s 51 MW wind turbine generators in Tamil Nadu, marking a milestone on the company’s journey towards achieving a 6 GW wind turbine generator (WTG) operation and maintenance portfolio by financial year 2025-26.

Inox Wind, under the INOXGFL Group, focuses on renewable energy and chemicals. With projects in several Indian states, it has a renewable energy capacity of 1,600 MW. The company also has four WTG manufacturing facilities in Gujarat, Himachal Pradesh, and Madhya Pradesh.

The company continues its divestment efforts, signaling a shift towards future renewable energy investments, mainly in the renewable energy sector’s O&M services.

In August,  Inox Wind’s financial strength was reinforced with a ₹5 billion ($60 million) investment from its main promoter and group entities, contributing to its debt reduction strategy, which already lowered liabilities by settling ₹1.61 billion ($19.56 million) and ₹2.5 billion ($30.37 million) in loans. This has reduced the company’s interest-bearing liabilities to over ₹11 billion ($132.7 million) in Q3 FY 2023.