Inox Wind Share Price was trading flat on Monday despite the company announcing ICICI Bank Consortium's Rs 2200 crore credit facility for the company. The stock opened positive at Rs 260 and touched intraday high of Rs 261.90 by the time of publication of this report. The stock touched 52-week high in today's trading session and then faced selling pressure. Short term investors can expect further upside move on this counter.

Inox Wind, a leading wind energy solutions provider, has secured a significant financing facility of ₹2,200 crore from a consortium of banks led by ICICI Bank, with the possibility of increasing this amount to ₹2,400 crore based on working capital assessments. This facility, primarily composed of non-fund-based instruments like bank guarantees and letters of credit, highlights the financial strength of Inox Wind’s balance sheet, achieved without corporate guarantees from its parent company, Gujarat Fluorochemicals Ltd (GFL). This agreement underscores the confidence of the banking community in Inox Wind’s operational performance and its promising future outlook.

Inox Wind Secures ₹2,200 Crore Financing Facility

Agreement with ICICI Bank-Led Consortium
Inox Wind has announced a financing agreement with a consortium of banks led by ICICI Bank to secure a ₹2,200 crore facility. This arrangement, primarily comprising non-fund-based instruments such as bank guarantees and letters of credit, underscores the banking sector’s confidence in the company’s financial standing.

Potential Enhancement to ₹2,400 Crore
The financing limit, currently set at ₹2,200 crore, is likely to be enhanced to ₹2,400 crore, according to a working capital assessment conducted by ICICI Bank, the lead institution in the consortium. This potential increase reflects the ongoing assessment of Inox Wind’s capital requirements and operational prospects.

Financial Independence and Strength

Sanctioned on the Strength of Inox Wind’s Balance Sheet
The financing facility has been approved based on the financial robustness of Inox Wind’s balance sheet, without any need for corporate guarantees or additional support from its parent company, Gujarat Fluorochemicals Ltd (GFL). This marks a significant step towards financial independence for Inox Wind, enhancing its credibility in the market.

Release from Previous Guarantees
With this new consortium arrangement, any prior corporate guarantees or support previously extended to Inox Wind by GFL will be vacated in the near future. This move signifies a critical shift in Inox Wind’s financial structure, allowing the company to stand independently on its financial merits.

Banking Sector Confidence in Inox Wind’s Performance

Endorsement of Financial and Operational Strength
Akhil Jindal, Group CFO of INOXGFL Group, highlighted the significance of this consortium arrangement, noting that it reflects the confidence of the banking community in Inox Wind’s financial strength and operational performance. Jindal stated that this agreement is the culmination of sustained efforts over several quarters, underpinned by strong operational metrics and a robust business outlook.

Strategic Financial Milestone
This financing arrangement marks a key strategic milestone for Inox Wind, providing the company with the necessary financial bandwidth to support its growth initiatives. The facility will enable Inox Wind to enhance its working capital capabilities, facilitating the execution of its projects and reinforcing its position as a leader in the wind energy sector.

Conclusion: A Stronger Financial Foundation for Inox Wind

Positioning for Future Growth
Inox Wind’s successful negotiation of this ₹2,200 crore financing facility highlights its strengthened financial position and operational resilience. By securing this support without reliance on parent company guarantees, Inox Wind is poised to capitalize on new opportunities in the wind energy market, setting a strong foundation for continued growth and sector leadership. The confidence demonstrated by the consortium of banks further cements Inox Wind’s reputation as a financially sound and operationally robust player in the renewable energy space.