Shares of Inox Green Energy Service Ltd (IGESL) were trading in the red on 9 October after the company signed a term sheet for the divestment of a 100% stake in Nani Virani Wind Energy Pvt Ltd SPV. The Solar Photovoltaic (SPV), which is a 50-megawatt operational wind farm located in Gujarat that was commissioned in May 2023.

The said divestment is part of a strategic decision that was taken by the company to become net debt-free.

According to the company, the divestment will further enable the company to become an asset-light annuity Operations and maintenance business. It will also help the firm to pair its debt on Inox Wind’s consolidated balance sheet.

In its regulatory filing, the company said that the transaction will commence post customary regulatory and banking approvals, which include the Board of Directors and shareholders’ approvals.

The company’s CEO, S K Mathusudhana, said, “We are pleased to announce a significant milestone in the journey of IGESL. We had set ourselves a target to be net debt-free by the end of FY24 and with this transaction we will achieve this goal. IGESL is on a massive growth journey with focus on continuously improving its performance and profitability.”

At 3:30 pm, the shares of Inox Green closed at Rs 64.78 or 1.86% below its previous close on NSE.