This S&P BSE Smallcap stock jumped 2% within the first half hour of markets opening on Monday after it announced an acquisition. The stock currently trades at Rs. 65.02 versus 65.26 at previous close.
The company has a market cap of Rs. 1,910 crore and is currently trading 14% away from its 52 week high, 26% away and above its 20 day and 200 day moving averages respectively, having been listed in late November 2022.
Inox Green Energy Ltd (“Inox Green”) said in a filing dated 22nd September 2023 that it has entered into a share subscription cum shareholders’ agreement with Resowi Energy Private Ltd to subscribe to the fresh equity shares of the target company on a private placement basis which will result in the company acquiring majority stake of 51% in the post share capital of the target company.
Resowi Energy is engaged in the business of operations and maintenance of Wind turbine generators (WTGs) and has capabilities to service 2 MW and higher rated WTGs of several OEMs operating in India & Sri Lanka. The acquisition will enhance IGESL’s expertise to offer its services to a wider customer base. The completion of the acquisition transaction is estimated to be within 2 months in the form of cash consideration.
Inox Green provides operation and maintenance services and common infrastructure facilities for wind turbine generators in India. In FY23, the company reported revenue at Rs. 248 crore and Net Loss of Rs. 25 crore indicating net loss margin of 10.4%. In Q1 FY24, the company reported revenue at Rs. 50 crore, down 7% QoQ from Rs. 54 crore.
Net profits during this period was Rs. 3.4 crore, up over 200% QoQ versus Net Loss of Rs. -2.5 crore in Q4 FY23, marking the first profitable quarter since listing.
Written by Sandeep R
The post Green Energy stock announces strategic acquisition; Shares jump in early trade appeared first on Trade Brains.
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