INOXGREEN Demerger: Shareholder Win

$INOXGREEN India's largest renewable O&M company INOXGREEN completed a strategic demerger on May 4 2026, separating heavy infrastructure to isolate a 50 percent margin annuity, transforming into India's only listed asset-light pure-play renewable O&M provider. The Demerger Explained INOXGREEN shed 1000 crore rupees in gross block by spinning off capital-intensive power evacuation infrastructure into Inox Renewable. This eliminates 50 crore rupees in annual depreciation. NCLT approved with appointed date October 1 2024. What INOXGREEN Keeps The entity focuses on O&M for wind generators and infrastructure. It manages 13.3 GWp renewable assets across wind and solar. Recent wins include 625 MW solar O&M from KEC International in Rajasthan, bringing total portfolio to 5.3 GW. O&M delivers stable EBITDA margins of 50 percent via asset-light model. Long-term contracts provide recurring annuity revenue. Company acquired 4.5 GW wind O&M from Wind World India. Why Shareholders Benefit This demerger benefits shareholders. First, removing 50 crore annual depreciation boosts profitability and EPS. Second, asset-light model improves return on equity, attracting investors. Third, 50 percent margin annuity commands higher valuation multiples. Fourth, Inox Renewable carries debt, reducing INOXGREENs leverage. Pure-play O&M lets management focus on organic growth via contracts and inorganic growth via acquisitions. INOXGFL Group promoter backing provides synergies. Risks to Watch Monitor order book growth, contract expansion, margin stability, capital efficiency. Valuation appears elevated, execution critical. Wind World India integration carries risk. Bottom Line Demerger unlocks value by creating high-margin, scalable, asset-light renewable O&M platform. Isolating 50 percent margin annuity while shedding infrastructure drives superior long-term returns for INOXGREEN shareholders.