Inox Wind will able to pay its debts after IPO

INOX wind
September 7, 2022

Wind energy results provider Inox Wind NSE 3.63% will come a debt-free company after its Rs 740 crore original share, which is awaiting Sebi nod, is over and fund infusion by promoters, according to its nonsupervisory form. According to the Draft Red Herring Prospectus (DRHP) filed with the request controller, as of June 2022, the company had a gross debt of Rs 1,717.8 crore and cash balance of Rs 222 crore, and a net debt of Rs 1,494.8 crore on its books.

Last week, the company said its promoters had agreed to inoculate up to Rs 800 crore by subscribing to non-convertible, non-cumulative sharing repairable preference shares on a private placement base. The fund will be invested by two protagonist group realities– Inox NSE-0.46 Leasing & Finance which will pump in over to Rs 600 crore, and Inox Wind Energy NSE 3.41% that will inoculate up to Rs 200 crore.

The entire plutocrat therefore raised will be used to retire debt, a statement from the company said on August 30. According to the DRHP, the entire proceeds from the IPO (original Public Offering) will also be used to retire debt and post-issue which will be entirely fresh issue of shares, the company will be net debt-free.

The company will also be divesting its stake in the Rs 350-crore SPV before the IPO, it said, adding net proceeds from the trade will be Rs 100 crore. That piecemeal, it’ll get a little over Rs 200 crore from converting clearances issued before. With these fund caregiving and also bettered operations having won orders worth 350 mw from NTPC NSE-0.77% in the recent history, the company is on its way to be a net- debt zero company, it said.

Its borrowings include Rs 300 crore for the Nani Virani design which is being presently developed by Inox Wind. It also has entered Rs 850 crore in advance payments from its crucial client, which is a group company. Meanwhile, Inox Wind said it’ll seek shareholders’ blessing to raise up to Rs 200 crore via allocation of 20 crore preference shares to its holding and protagonist establishment Inox Leasing and Finance NSE-0.31% for cash in the coming Annual General Meeting (AGM) on September 28.

The company’s board at its meeting held on 30th August, 2022 approved the allocation of over to 20 crore 0.01 per cent non-convertible, non-cumulative, sharing, repairable preference shares of the face value of Rs 10 each for an aggregate value not exceeding Rs 200 crore to Inox Leasing and Finance Ltd NSE-0.31%, said the company’s notice for the AGM.

INOX wind

The notice showed the offer to raise Rs 200 crore is listed on the docket of the AGM. It also explained that to accommodate the allocation of preference shares, the company proposes to increase its authorised share capital from the being Rs110,11,00,000 to Rs310,11,00,000.

The increase in authorised share capital will bear consequential correction of the share capital clause of the memorandum of association of the company, it stated. The company will also seek shareholders’ nod to shift its listed office from Gujarat to Himachal Pradesh.

About INOX wind Ltd.

Inox Wind is India’s leading wind energy solutions provider servicing IPPs, Utilities, PSUs, Corporates and Retail Investors. Inox Wind is a fully integrated player in the wind energy market with three state-of-the-art manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh with a cumulative manufacturing capacity of 1,600 MW. Inox Wind manufactures the key components of the Wind Turbine Generator (WTG) to ensure high quality based on the most advanced technology, reliability of performance, and cost competitiveness. Inox WTGs are designed for low wind speed sites such as those in India.

A robust, energetic and experienced team comprising experts across all relevant fields and verticals make Inox Wind a dynamic and enterprising corporate entity. Inox Wind is an ISO 9001:2008 certified company. In addition, IWL’s manufacturing units are awarded with ISO 14001:2004, OHSAS 18001:2007 and ISO 3834-2 (tower manufacturing facility). Inox Wind turbines are type certified by TUV SUD according to “The Guidelines for the Certification of Wind Turbines issued by Germanischer Lloyd” and are duly enlisted in RLMM by C-WET.

Inox Wind manufacturers three variants of the 2 MW WTG:
  • Rotor diameter of 93 meters with hub height of 80 meters
  • Rotor Diameter of 100 meters with hub height of 80 / 92 meters
  • Rotor Diameter of 113 meters with hub height of 92 meters
  • Rotor Diameter of 113 meters with hub height of 120 meters

Inox Wind owns a 100% subsidiary, Inox Wind Infrastructure Services, which does the project development in respect of wind power projects, including wind studies, energy assessments, land acquisition, site infrastructure development, power evacuation, statutory approvals, erection and commissioning and long term operation and maintenance of the wind farms.