Inox Wind gains 7.5% after board announces 3:1 bonus issue

Shares of Inox Wind closed 7.5% higher on Thursday after the company announced that its board of directors has proposed the issuance of bonus shares in a 3:1 ratio. This means investors will get three bonus equity shares for every single existing equity share out of the accumulated reserves of the company.

The issuance of bonus shares will bolster the capital base of the company without any cash outflow and will also enhance the liquidity of its shares, broadening participation of a wider set of investors, it said.

Inox Wind said it turned profitable in the quarter ending December 2023 and that it has been on the back of a significant ramp-up in business operations.

During the third quarter of fiscal year 2024 (Q3FY24), the company reported consolidated revenue of ₹506.9 crore, registering a 113% increase from ₹ 237.7 crore posted in the same period of previous fiscal, on the back of strong order execution in the quarter.

Earnings before interest, tax, depreciation and amortisation (EBITDA) during the quarter stood at ₹99.5 crore compared to an EBITDA loss of ₹172.5 crore in Q3FY23. The company posted a profit after tax of ₹1.8 crore in Q3FY24 compared to a loss after tax of ₹ 287.9 crore in the same period of the previous fiscal.

The company said during the earnings announcement that it had secured a single wind project order of 1,500 MW from a leading power utility. Its order intake cumulated to about 1,850 MW over the past few months, taking the orderbook to nearly 2.6 GW, the company had stated. The company had said it also signed a landmark agreement for the launch of 4.X MW wind turbines in India.

Shares of the company had gained over 23% since the beginning of the year. The stock has risen over 506% in the last one year.