Inox Green Energy targets to become debt free co in 2023
New Delhi: Inox Green Energy Services Limited, one of the major wind power operation and maintenance service provider within India, will be debt free going forward. The company has Rs. 900 crore total debt as on June 30, 2022.
Company's net debt after adjusting cash and cash equivalent of Rs. 100 crore as on June 30, 2022 comes to Rs. 800 crore.
Around Rs. 300 crore will be realized by sell of SPV "Nani Virani Wind Energy Private Limited", which would be utilize towards repayment / prepayment of debt. Company plans to utilize net proceed from fresh issue towards repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company including redemption of Secured NCDs in full aggregating up to Rs. 370 crore. The balance total debt amounts to Rs. 130 Crore which company plans to repay through internal accrual which it expects to realize as a result of high EBIDTA margin in the range of 47-54 per cent during the fiscal 2020, 2021, 2022 and also the fact that reduction in debt will curtail interest cost thereby assisting in enhancing internal accruals further.
On outlook of sustaining lower debt level in the balance sheet, the company intend to transit towards an asset light model with minimal capital expenditure by, among others, reducing project bids which requires it to develop such infrastructure prior to securing investors to establish wind farms on a plug-and-play basis and investments into the wind power assets of our subsidiaries.
The move towards asset light model would curtail need to invest significant capital expenditure towards developing common infrastructure facilities such as pooling substations and transmission lines under the current business model.
