Inox Green Announces Intent To Acquire O&M Wind Service Provider

In a stock exchange filing, INOX Wind subsidiary Inox Green Energy Services Limited (IGESL) is close to the purchase of the majority ownership in a target company, that is a reputable Independent O&M Wind Service Provider with a 230+MW fleet that mostly serves South India.

According to the firm, this acquisition is a result of the company’s strategic choice to expand its fleet both organically and inorganically. Since a sizable portion of India’s operating fleet is now run by the unorganised sector, the company has a significant opportunity to grow quickly through inorganic means. Smaller players from the unorganised sector have expanded as a result of the sector’s four years of painful transition.

For Inox, the acquisition plan comes at a time when the wind energy sector is finally showing signs of revival, with more onshore bids , as well as projects in the pipeline nearing completion. Of course, an offshore wind sector is finally becoming a closer possibility too, probably by 2025.

The target company has a wealth of experience in the wind business, specialising in O&M for OEMs of wind turbines from multiple brands, and offers both general O&M services and specialist corrective maintenance services. The company has a demonstrated history of success with many clients for O&M services with up to 5-year maintenance agreements.

Inox Green will be well-positioned to service customers by utilising the synergies and efficiencies across the combined teams, supply chain capabilities, and technical experience following this acquisition, which will allow it to enter the multi-brand OEM wind turbine O&M sector. The target company will expand more quickly thanks to Inox Green’s technical and financial strengths.

The transaction is scheduled to close by the end of January 2023, subject to a few regulatory and customary closing conditions.

Earlier, Inox Wind announced that the Board has given the company permission to finance up to Rs 800 crore through the private placement of non-convertible preference shares to promoters. The official news release states that the money raised would go toward paying off the debt.