According to the draft papers, Inox Wind owns more than 22 crore shares of Inox Green Energy Services, translating to 93.84% of the entire equity share capital.
Inox Green Energy Services, an arm of Inox Wind has filed draft IPO papers with the Securities Exchange Board of India (SEBI) to raise Rs 740 crore through the market. Inox Wind informed the stock exchanges that Inox Green Energy has filed its papers on February 7. The IPO will be a mix of a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders of the company. Inox Green Energy Services was formerly known as ‘Inox Wind Infrastructure Services Limited’. The name was changed earlier last year.
According to the DRHP, the issue will consist of a fresh issue of equity shares worth Rs 370 crore and an offer for sale which would also be worth Rs 370 crore. The promoter Inox Wind will be selling shares worth Rs 370 crore through the OFS part of the IPO. According to the draft papers, Inox Wind owns more than 22 crore shares of Inox Green Energy Services, translating to 93.84% of the entire equity share capital.
Inox Green Energy Services plans to use the funds raised through the IPO towards the repayment and/or pre-payment, in full or part, of certain borrowings availed by the Company including redemption of Non-Convertible Debentures in full. According to the DRHP, this would translate to Rs 260 crore. The rest will be used for general corporate purposes. Inox Green Energy will only receive Rs 370 crore from the issue while the rest will go to the promoter Inox Wind. The company may also go for a pre-IPO placement which may change the size of the issue.
The IPO of Inox Green Energy Services has been in the pipeline since December last year when the company’s Board had approved fundraising by way of an initial public offer. On January 18 this year as an existing and eligible shareholder of Inox Green Energy, Inox Wind had accorded its approval to participate in the proposed offer through an offer for the sale of equity shares.
Edelweiss Financial Service, DAM Capital Advisors, Equirus Capital Private, IDBI Capital Markets & Securities, and Systematix Corporate Services are the book running lead managers to the IPO of Inox Green Energy Services.
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