Inox Wind jumps over 2% on receiving Letter of Intent from IGREL Renewables

Share price of Inox Wind jump 2.2% on the NSE ₹248 apiece after company received LoA from IGREL execution of 550 MW power plant on turnkey basis in Gujarat, Rajasthan and Madhya Pradesh.

Inox Wind (IWL) has received a Letter of Intent (LoI) from IGREL Renewables (IGREL) for execution of 550 MW wind capacity on turnkey basis. As part of the project, Inox Wind will supply, install and commission the Wind Turbine Generators (WTGs), and provide multi-year comprehensive operations & maintenance (O&M) services post commissioning.

The project will be executed over the next 24 months across multiple sites in the states of Gujarat, Rajasthan and Madhya Pradesh. The 550 MW LoI is over and above the firm order of 200 MW received in the past, and takes the company's order book to greater than 3.5 GW.

The total revenue stood at ₹607 crore for the June 2024 quarter. The mentioned figure indicates an increase of about 110.41% as against ₹288 crore during the year-ago period. The Total Profit for the quarter ended June 2024 of ₹70 crore grew from ₹ 67 crore. Operating profit saw a handsome growth to ₹119 crore from ₹1.5 crore in the quarter ended June 2024.

Inox Wind is India’s leading wind energy solutions provider servicing IPPs, Utilities, PSUs & Corporate Investors. The shares of the company delivered stellar returns of 89% in 2024 on YTD basis.

Shares of Indian information technology (IT) companies took a hit on Wednesday, September 18, ahead of the crucial US Federal Reserve meeting later in the day that could kick-start the rate cut cycle.

As of 1:30 pm, the top five losers among the NIFTY50 stocks were all tech companies – Tata Consultancy Services Ltd (TCS), Tech Mahindra Ltd, Infosys Ltd, Wipro Ltd and HCL Technologies Ltd.

While TCS shares were down 3.99% to ₹4,326 apiece, HCL Technology was the second biggest loser with shares trading 3.79% lower at ₹1,745 apiece. Tech Mahindra shares were trading 3.48% lower at ₹1,594 apiece. Infosys fell 3.47% to ₹1,884 apiece on the NSE, while Wipro slipped 3.1% to ₹534.4 apiece.

As of 2:00 p.m., the NIFTY IT index was down over 3.5%, with all 10 of its components trading in the red. Mphasis Ltd, which is not part of the NIFTY 50 index, declined the most, over 5%, to trade at ₹3,015 level.

The US Federal Open Market Committee (FOMC), the Fed’s chief body for monetary policy, is expected to cut rates for the first time in four years at its meeting today. Though a rate-cut is usually considered a positive for stocks as it holds the potential to boost spending in the economy, the scenario is a little different this time.

Reports suggest that a majority of Wall Street traders—two-thirds — are expecting a rare 50 basis point cut in policy rates at today’s meeting. If this turns out to be true, it would officially stamp out the growing fears of a recession in the US economy.

As most IT stocks are trading near their all-time highs, their stretched valuations are a major concern among investors. Any correction triggered in the broader market due to global macroeconomic concerns could, therefore, hit the sector the most.

Also, a 50-bps rate cut is a negative for the US dollar. If the Fed hints at steep cuts going forward in its commentary, the Indian rupee may strengthen against the dollar. This may weigh down stocks of exporters like IT companies further.

The US central bank has held rates steady since July 2023 after raising them by a record 11 times between March 2022 and July 2023. Experts have already factored in a 25-bps cut by the Fed this time along with a dovish stance, but anything beyond that could raise eyebrows.

The NIFTY 50 index was trading marginally lower at 25,350, down 0.27%, on the NSE at 2:00 pm, amid a mixed trend in the Asian markets.

Overnight, the Wall Street benchmark indices closed little changed ahead of the US Fed interest rate decision. Dow Jones hit a record high during the session, but ended with minor losses. The S&P also hit a new high, but ended flat.

Shares of REC Ltd surged over 3% to hit an intraday high of ₹563.25 apiece on the NSE on Wednesday, September 18, after the company announced entering into a non-binding financial commitment of increasing its renewables loan book to more than ₹3 lakh crore by 2030.

In a filing on September 17, REC informed the exchanges that it has signed non-binding Memorandums of Understanding (MoUs) with renewable energy developers aggregating nearly ₹1.12 lakh crore, which will be implemented over five years.

The state-owned power financing company signed a ‘Shapath Patra’ to increase its renewables loan book to over ₹3 lakh crore by 2030. The signing of the MoUs will increase the share of renewables in REC’s loan book from 8% to 30% by 2030.

REC projects a loan book of ₹10 lakh crore by 2030 with a strategic plan, which includes increasing the fund allocations for the renewable energy segment.

The MoUs were signed at the 4th Global Renewable Energy Investors Meet and Expo (RE-INVEST 2024), which will be held from September 16 to September 18 in Gandhinagar, Gujarat. The company said in the release that it plans to be a key player in achieving India’s aim of increasing its installed non-fossil-based power generation capacity to 500 GW from 200 GW by 2030.

The MoUs signed by the state-owned Non-Banking Financial Company (NBFC) include the development of solar and wind hybrid projects, solar and wind round the clock (RTC) projects, firm and dispatchable renewable energy (FDRE) projects, floating solar plants, ultra mega renewable energy park, hydroelectric power projects, Battery Energy Storage Systems (BESS), Pumped Storage, Hydropower, Green Ammonia/Hydrogen, Solar Cell/Module Manufacturing and other such technologies.

The state-owned power sector company said that discussions are underway to finance green energy corridors, wind turbine manufacturing, and the electric vehicle ecosystem. The company said that it is open to considering renewable projects by developers for the consumer and industrial segments having top-rated offtakers.

REC shares were trading at ₹553.5 apiece on the NSE at 11:12 am, up 1.59%.

The central government has approved the joint venture between Nuclear Power Corporation of India Limited (NPCIL) and NTPC to establish nuclear power plants.

Anushakti Vidhyut Nigam Limited (ASHVINI), the JV entity of NPCIL and NTPC, has received approval from the government to build, own and operate nuclear power plants in India in accordance with provisions of the Atomic Energy Act 1962, according to an official release by NTPC.

In the JV entity, NPCIL holds 51% stake and NTPC has 49% ownership.

Additionally, the Government has approved the transfer of the Mahi Banswara Rajasthan Atomic Power Project (MBRAPP) consisting of four 700 MWe reactors based on indigenous Pressurized Heavy Water Reactor (PHWR) technology from NPCIL to ASHVINI.

Moreover, the government has exempted NPCIL from investing over ₹500 crore and NTPC from investing more than ₹5,000 crore in a single joint venture or subsidiary.

This financial flexibility will support the accelerated expansion of nuclear power capacity in India. Beyond MBRAPP, ASHVINI aims to pursue other nuclear projects across the country.

This initiative will facilitate the pooling of resources like financial, technological and expertise from both NTPC and NPCIL contributing to the rapid growth of nuclear power generation to help meet India's net zero target by 2070, a statement from NPCIL read.

India has established an ambitious goal to reach 22,800 MW of nuclear power capacity by 2031-32, significantly up from the current capacity of 8,180 MW.

Earlier this month on September 10, NPCIL and the Emirates Nuclear Energy Corporation (ENEC) of the United Arab Emirates (UAE) signed a MoU in the field of the operations and maintenance of the nuclear power plant.

The Memorandum of Understanding was signed by Bhuwan Chandra Pathak Chairman and Managing Director of the Nuclear Power Corporation of India Limited (NPCIL), and Mohamed Al Hammadi, Managing Director and Chief Executive Officer of the Emirates Nuclear Energy Corporation (ENEC).

NTPC Limited shares closed 0.60% lower at ₹413.80 apiece on the NSE.