IPO Update: Inox Green Energy Services Files Draft Papers for IPO to Raise Rs 740 Crores

IPO Update: Inox Green Energy Services Files Draft Papers for IPO to Raise Rs 740 Crores Inox Wind, a wind energy service provider, announced on Tuesday that its significant subsidiary Inox Green Energy (IGESL) filed a draught red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for an initial public offering on February 7, 2022. (IPO). The proposed offer includes a fresh issue of equity shares worth up to 370 crore and a company offer for sale (OFS) of equity shares worth up to 370 crore. 'Inox Wind Infrastructure Services Limited' was the previous name of Inox Green Energy Services. Earlier this year, the name was altered. Inox Green Energy is an Indian wind energy operating and maintenance company. The IPO comes at a time when renewable energy is generating a lot of interest, especially since the government is granting a PLI of Rs 19,500 crore to the sector. At the recently concluded COP26 Climate Summit in November, India committed to a net-zero carbon economy by 2070. With three production factories in Gujarat, Himachal Pradesh, and Madhya Pradesh, the parent firm Inox Wind is a fully integrated player in the wind energy market. In the last year, the stock of Inox Wind has returned 95 percent. Earlier in December 2021, the board of IGESL (formerly known as InoxWind Infrastructure Services Ltd) approved fundraising via an IPO, subject to the receipt of all necessary approvals, including shareholder approval, market circumstances, and other factors. Inox Wind shares have returned a multibagger of over 107 percent in a year, while the stock has up 19 percent in 2022 (year-to-date or YTD) thus far. On February 8, Inox Wind's stock closed 3.9 percent higher at Rs 130.25 on the National Stock Exchange. The IPO was approved by the board of directors of Inox Wind's subsidiary on January 18. Inox Green Energy stated in the DRHP that the funds from the new equity share offering will be used to repay or retire certain of the company's debts, as well as for general corporate reasons. At the conclusion of the December quarter, the company's non-current borrowings totalled Rs 319.6 crore. About 70% of the profits from the new IPO will be used to repay Inox Green Energy's debt, with the remainder going toward general corporate purposes, such as acquisitions. As of December 31, 2021, it owed Rs 827 crore. The issue's book running lead managers are Edelweiss Financial Services, DAM Capital Advisors, Equirus Capital, IDBI Capital Markets & Securities, and Systematix Corporate Services.