Inox Green Energy to debut on stock market Rs740 crore IPO in 30-45 days, eyes debt-free status

view original post

India is third both in terms of global energy consumption and also attractiveness for renewable energy investments, with green energy accounting for almost 40 per cent of its installed power capacity. Indian conglomerate Inox has set a target to control a quarter of India’s renewable energy market in the next two years. To achieve this, its subsidiary Inox Green Energy is set to go public in the next 30 to 45 days, with an aim to go debt-free by the end of 2022.

Inox has announced an upcoming IPO worth Rs 740 crore in the next couple of months, and will use 70 per cent of the funds raised from it to repay its debt. Out of Rs 740 crore, Rs 370 crore is expected to flow in fresh issuance of stocks while the rest will come from offer-for-sale of promoter equity. It will divert Rs 260 crore raised from the share sale to service a part of its Rs 827 crore debt, and the rest towards expansion.

Second bid for expansion

This is the second time Inox Green Energy is trying to debut on the Indian stock market, after withdrawing its previous Draft Red Herring Prospectus in April without giving any particular reason.

Already going strong

The company harnesses wind energy to provide clean power, and its parent company Inox Wind secured a 200MW renewable power project from NTPC earlier this year. Its subsidiary Inox Green Energy provides maintenance wind turbine generators and infrastructure at wind farms. Inox Wind’s 1600MW capacity is powered by manufacturing units in Haryana, Gujarat and Himachal Pradesh.

The Inox Group founded in 1920 as a paper and newsprint business, was split between Pavan Jain who bagged multiplex operator Inox Leisure, while Inox Wind went to his brother Vivek Jain, who also controls Gujarat Fluorochemicals.

(To receive our E-paper on whatsapp daily, please click here. To receive it on Telegram, please click here. We permit sharing of the paper’s PDF on WhatsApp and other social media platforms.)

Related Posts