Inox to soon file for IPO of Green Energy Services unit

Mumbai: Inox Wind is set to file a draft red herring prospectus next week for the initial public offering of its Inox Green Energy Services unit.

The IPO will likely seek to raise about ₹750 crore, said bankers. As much as ₹425 crore of this will be against a fresh issue of shares in Inox Green. Inox Wind, which holds 95% of the subsidiary, will sell a part of its stake for the remaining ₹325 crore, they said.

Inox Green had raised ₹120 crore recently through a pre-pre-IPO placement.


Inox Green will use about ₹300 crore from the primary share sale to repay debt and the balance for acquisitions. The company will be debt-free after this, said the bankers.

Inox Wind on Tuesday said a panel of its board had approved the proposal to sell a part of its shares in the IPO. It will use proceeds from the offer for sale to pare its debt.

Currently, Inox Wind has an external debt of ₹700 crore.

DAM Capital Advisors, Edelweiss Financial Services, Equirus Capital and IDBI Capital Markets are the lead managers for the issue. Inox Green's IPO plan comes at a time when investors are upbeat about companies involved in renewable energy businesses.

Shares of Inox Wind have rallied 86% in the past one year. Inox Wind is India's fully integrated wind energy solutions provider with a manufacturing capacity of 1,600 MW.