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

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.

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%.