The market regulator Sebi gave the go-ahead for Inox Green IPO of size INR 740 crore. The draught red herring prospectus (DRHP) states that the company’s public offering will consist of new shares worth Rs 370 crore as well as an offer by the company’s promoter Inox Wind to sell equity shares totaling Rs 370 crore.
The company submitted draught IPO documents to the SEBI on June 20 of this year. The draught papers state that the proceeds from the issue will be used for debt repayment and general corporate purposes.
Inox Green IPO –Tentative Dates
|IPO Issue Opening date||Nov 11, 2022|
|IPO Issue closing date|
Nov 15, 2022
|IPO Allotment Date||Nov 18, 2022|
|IPO Listing date||Nov 23, 2022|
|IPO PRICE||INR 61-65|
|IPO LISTED AT||NSE, BSE|
Inox Green IPO Details
|Inox Green IPO Date||Nov 11, 2022, to Nov 15, 2022|
|Inox Green IPO Face Value|| |
₹10 per share
|Inox Green IPO Price||₹61 to ₹65 per share|
|Inox Green IPO Lot Size||230 Shares|
|Issue Size||113,846,154 shares of ₹10 |
(aggregating up to ₹740.00 Cr)
|Fresh Size||INR 370 CRORE|
|Offer for sale||INR 370 CRORE|
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
|QIB Shares Offered||Not less than 75% of the Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Offer|
|Retail Shares Offered||Not less than 10% of the Offer|
Inox Green IPO –Industry Overview
The energy requirement is projected by CRISIL Research (Credit Rating Information Services of India Limited) to increase at a 3.0-4.0% CAGR for the fiscal years 2022 to 2026, following a slight fall of 1.2% in fiscal 2021 due to the economic depression caused by the COVID-19 outbreak. Power demand dropped during the first quarter of fiscal 2021 when the country was placed on lockdown, which halted all activity. As part of the COVID-19 containment efforts, industries were shut down, offices were locked up, and services like retail, hospitality, and entertainment were shut down.
As a result, power consumption continued to plummet, falling by about 16.0% during the first quarter of fiscal 2021. After consecutive lockdowns were relaxed, the economy gradually started to recover, and power demand rose to 8.7% y-o-y for the first half of the fiscal year of 2021, following a modest (0.9%) fall in the second quarter of the fiscal year. Power demand increased by 8.7% y-o-y in the fourth quarter of fiscal 2021 as a result of the economy’s momentum and a lower base of March 2020 and March 2021, which contributed to a 22.0% increase in March 2021. As a result, the drop in power demand for the fiscal year 2021 was only (1.2) %.
Inox Green IPO –Company Overview
Inox Green is one of India’s leading providers of operation and maintenance (“O&M”) services for wind energy. Inox Green is in the business of offering long-term operations and maintenance (O&M) services for wind farm projects, more particularly, O&M services for wind turbine generators (WTGs) and the shared infrastructure facilities on the wind farm that facilitate the evacuation of power from such WTGs. Because of the lengthy O&M contracts inox green sign clients, Inox Green yearly income is consistent.
Inox Green is a division of Inox Wind Limited (“IWL”), a member of the Inox GFL group of enterprises and listed on the National Stock Exchange of India Limited and the BSE Limited. Power generating is a business that our subsidiaries are involved in through renewable sources of energy with Nani Virani Wind Energy Private Limited being the only subsidiary which has commenced power generation.
Inox Green IPO – National Footprints
The following map shows our presence in the wind-resource-rich states of India as of March 31, 2022, along with a breakdown of our portfolio of wind generating capacity:
Inox Green IPO – Proceeds
|S NO.||PARTICULARS||Amount to be finianced from proceed (in millions)|
|1.||Repayment and/or prepayment, in full or in part, of some borrowings that our company took out, including the complete redemption of non-convertible debt||2600|
|2.||General corporate purposes||900|
Inox Green IPO – Financial Statements
Inox Green IPO –Strength
- Existing portfolio base that is robust and diverse
- A proven track record, supportive national policies, and potential for future expansion
- Dependable cash flow supported by long-term O&M agreements with counterparties of high credit worthiness
- Already-existing supply chain
- A capable and knowledgeable management group
Inox Green IPO – Weakness
- The company, financial situation, and future prospects of Inox Green could be negatively impacted if they chose a different service provider to operate and maintain their wind turbine generators than Inox Wind Limited, the promoter.
- Future declines in service sales and service contract renewal rates are possible.
- Letters of intent may be withdrawn or may not result in confirmed orders in Inox Wind Limited’s order book. Orders may also be delayed, amended, or cancelled.
- Legal actions involving the Company, its subsidiaries, directors, promoter, and group companies are still pending.
Inox Green Energy IPO Registrar
Phone: +91-22-4918 6270
Inox Green Energy IPO Lead Manager(s)
- Edelweiss Financial Services Ltd
- DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)
- Equirus Capital Private Limited
- IDBI Capital Market Services Limited
- Systematix Corporate Services Limited