Inox Wind Inks Rs 2,200-Crore Financing Deal With ICICI Bank-Led Consortium

Inox Wind Ltd share price rose as much as 2.97% before paring gains to trade 0.72% higher at Rs 256.18 per share.

Inox Wind Ltd share price rose as much as 2.97%. (Source: Inox Wind website)

Inox Wind Ltd. has signed a consortium agreement with a group of banks, led by ICICI Bank Ltd., for securing financial limits of approximately Rs 2,200 crore. This limit is expected to be increased to around Rs 2,400 crore, based on ICICI Bank's working capital assessment, as per an exchange filing on Monday.

The limits extended are predominantly non-fund based, including bank guarantees and letters of credit. These facilities have been approved based on Inox Wind's financial strength, without the need for any corporate guarantees, or support from Gujarat Fluorochemicals Ltd., as per the filing.

IWL’s recent fund raises, as well as its operational ramp-up, have led to its balance sheet becoming net cash positive. With this arrangement in place, any prior corporate guarantee or any other such support extended to IWL by GFL stands vacated or to be vacated in the near future.

Also Read: Inox Wind EPC Arm Raises Rs 350 Crore By Preference Issue; Shares Gain

Inox Wind Share Price Movement

Inox Wind Ltd share price rose as much as 2.97% before paring gains to trade 0.72% higher at Rs 256.18 per share, compared to a 0.44% rise in the NSE Nifty 50 as of 1:49 p.m.

The stock has gained 413.26% in 12 months, and 104.17% year-to-date. The relative strength index was at 68.73, which implied the stock was overbought.

Out of six analysts tracking the company, five maintain a 'buy' rating and one recommends a 'hold', according to Bloomberg data. The average 12-month analysts' consensus price target implies a downside of 12.8%.

Also Read: Stock Market Today: Nifty Ends Just 80 Points Away From 26,000; Sensex Settles At Record High 

Watch LIVE TV , Get Stock Market Updates, Top Business , IPO and Latest News on NDTV Profit.
GET REGULAR UPDATES