Inox Green Energy will be using ₹7 out of ₹10 from the IPO to repay its debts

• Inox Green Energy, owned by Inox Wind, is coming up with an IPO worth ₹740 crore consisting of ₹370 crore of fresh issue and another ₹370 crore by existing promoters.
• The company is a wind power operation and maintenance service provider within India.
• The company has a total debt of ₹827 crore and it will pay ₹260 crore of it from IPO proceeds.
  

Inox Wind’s subsidiary Inox Green Energy is coming up with an initial public offering (IPO) worth ₹740 crore. The IPO consists of ₹370 crore of fresh issue of shares by the company and another ₹370 crore from existing promoters.

The company will use about 70% of the IPO proceeds from the fresh issue to repay Inox Green Energy’s pile of debt and the rest for general purposes including acquisitions. It has a debt of ₹827 crore as on December 31, 2021.
Inox Green Energy is a wind power operation and maintenance service provider within India.

The IPO comes at a time when there is a lot of interest around renewable energy considering the government is even providing ₹19,500 crore production linked incentive (PLI) to the sector.

All this because Prime Minister Narendra Modi committed to India reaching net zero in carbon emission by 2070.

While the government is extending its hands to support the renewable energy sector, the company’s high debt levels and slashing profit may not be a compelling deal to investors.
The parent company Inox Wind is a fully integrated player in the wind energy market with three manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh. Inox Wind’s stock has delivered 95% returns in the last one year.

SEE ALSO: Here is how PM CARES Fund was spent last year
Power, banking and IT stocks see sharp sell-off on FII pull out and as investors carve out money for LIC IPO