Inox Green Energy Services, a subsidiary of Inox Wind, intends to raise Rs 740 crore through an initial public offering (IPO) by October of this year.
On February 7, 2022, IGESL stated that it has filed a draft red herring prospectus with the Securities and Exchange Board of India, but withdrew it in April for unclear reasons. Inox Green Energy submitted its second draft red herring prospectus in June.
The proposed Offer comprises a Fresh Issue of Equity Shares worth up to Rs. 370 crores. and an offer to sell Equity Shares worth up to Rs. 370 crores.
The company received the observation letter on September 13. Before bringing an IPO, it is necessary for any company to get an observation letter. The company may also consider pre-IPO placements. If such placement is completed, the size of the new issue will be reduced.
After establishing itself in the Indian industry, the company intends to expand into the international market whether in South East Asia, the Gulf, or Africa.
Inox Wind will be debt-free following its Rs 740-crore initial public offering.
Inox Green Energy Services provides long-term Operation and Maintenance (O&M) services for wind farm projects, especially for Wind Turbine Generators (WTGs) and common infrastructure facilities on wind farms that facilitate power evacuation from such WTGs.
Inox Green Energy Services is now growing at a rate of 30-40% every year. Today, the volume for Inox Green Services is close to Rs 160 crore, and it is expected to reach Rs 400-500 crore in the next 3-4 years.
It has borrowed Rs 300 crore for the Nani Virani project, which is now being constructed by Inox Wind. It has also got an advance payment of Rs 850 crore from its important customer, a group firm.
The business would also sell its stake in the Rs 350-crore SPV before the IPO, with net proceeds of Rs 100 crore from the transaction. Aside from that, it will receive little more than Rs 200 crore from the conversion of previously issued warrants.
Meanwhile, Inox Wind said that at its next Annual General Meeting (AGM) on September 28, it will seek shareholder permission to fund up to Rs 200 crore through the issuing of 20 crore preference shares to its holding and promoter business Inox Leasing and Finance for cash.
According to the company's notice for the AGM, the board of directors approved the issuance of up to 20 crore 0.01 percent non-convertible, non-cumulative, participating, redeemable preference shares with a face value of Rs 10 each for an aggregate value not exceeding Rs 200 crore to Inox Leasing and Finance Ltd at its meeting on August 30, 2022.
It further stated that the business intends to enhance its authorized share capital from Rs 110, 11, 00,000 to Rs 310, 11, 00,000 to facilitate the issuing of preference shares.
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