This acquisition is a part of the strategic decision taken by the company to grow its fleet through the inorganic route as well. The inorganic route provides a large growth opportunity for the firm to grow its business rapidly as a large part of the operating fleet in India is currently being managed by the unorganized sector.

Inox Green said that the transition pain in the sector over the past four years saw the growth of the smaller players from the unorganized sector. The inorganic growth that the company have embarked upon is favorable for all stakeholders; the wind farm owner, the current operations and maintenance (O&M) provider and the firm. The company added that it is actively pursuing inorganic growth opportunities along with the rapid growth that it envisages from the organic route as well.

The target company is having a deep & rich experience in wind industry and specializes in O&M of multibrand wind turbine original equipment manufacturer (OEMs) and provides comprehensive O&M services as well as specialized corrective maintenance services. The company has a proven successful track record with several customers for O&M services with maintenance contracts running up to 5 years.

With this acquisition, Inox Green enters multi brand OEM wind turbine O&M business and will be well positioned to serve customers by leveraging the synergies and efficiencies across the combined teams, supply chain capabilities and technical expertise. The technical and financial strengths of Inox Green will aid the target company to grow at a faster pace. The transaction is subject to certain regulatory and other customary closing conditions and is expected to conclude by end of January 2023, the company stated in the press release.

Inox Green Energy Services is one of the major wind power operations and maintenance (“O&M”) service providers within India. It is engaged in the business of providing long-term O&M services for wind projects. It is a subsidiary of Inox Wind with whom it enjoys a synergistic relationship and a part of the Inox GFL Group of companies.

Shares of Inox Green Energy Services debuted on the bourses on 23 November 2022. The scrip was listed at a price of Rs 60.50, at a discount of 6.92% as compared to the issue price of Rs 65.

The company reported a net loss of Rs 11.87 crore in Q2 FY23 as against a net loss of Rs 11.58 crore posted in Q1 FY23. Total Income from operations rose 4.3% quarter on quarter (QoQ) to Rs 65.87 crore in Q2 FY23.