Wind turbine maker Inox Wind Ltd, a part of $2 billion Inox Group, has got the approval for floating its initial public offer (IPO) from capital market regulator SEBI, becoming the first firm to get the green signal for a public float after the new government took over.
Inox Wind had applied just over a year ago.
This would be the Inox Group's third entity to get listed for which it will dilute only a minority stake in this public offer through a mix of offer for sale and fresh issue. Inox Wind has been providing wind power solutions since 2010 and is a subsidiary of listed Gujarat Fluorochemicals, the largest producer of refrigerant, chloro-methane and carbon credits in India.
The other publicly held company under the group is Inox Leisure, the country’s second-largest multiplex chain.
When it originally applied for the IPO last year, Inox Wind had sought to raise around Rs 550 crore through fresh issue of shares besides offer for sale by its promoters. Almost half of this was to be used for securing long-term working capital requirement and the rest was to be used to spruce up manufacturing capability and invest in a subsidiary involved in turnkey solution provider for wind power projects.
Last week, a top executive of the firm had said it may look to raise Rs 1,000 crore this fiscal as it awaited SEBI approval to the issue.
Axis Capital, Bank of America Merrill Lynch, Edelweiss and Yes Bank are the managers to the proposed public offer.
For the year ended March 31, 2013 it had revenues of Rs 1,064 crore with net profit of Rs 150 crore. The firm has a factory in Gujarat and Himachal Pradesh.
Inox has a capacity of 800 MW for hub and 600 MW for turbines. It recently bagged a Rs 900 crore order for 170 MW wind power project at Madhya Pradesh with its newly launched 2-MW wind turbines. This has taken its total order book position to 700 MW.
It aims to execute orders worth 500 MW by this fiscal which could translate into revenues of Rs 3,000 crore in FY15.
Another listed player in this space is Suzlon Energy, one of the world’s top wind turbine makers. The debt laden firm has been restructuring in the recent past to clean up its balance sheet.
(Edited by Joby Puthuparampil Johnson)