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.
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.
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.
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