Inox Winds aims to raise $165M through IPO this fiscal

Optimistic about the next wave of growth in wind power, the USD 2 billion Inox Group is looking at the capital market for Inox Wind Ltd to raise around Rs 1,000 crore by this fiscal.

It would be the third entity of the group to get listed.

"We are looking at raising around Rs 1,000 crore from the market. Our merchant bankers have indicated that we may get the approval from regulators soon. We may list it by this fiscal," Inox Wind Ltd director Devansh Jain told PTI.

He said the company will dilute only a minority stake in the proposed public offer.

Wind power solutions providers since 2010, Inox Wind is a subsidiary of listed Gujarat Fluorochemicals. The other publicly held company under the group is Inox Leisure.

Jain said the new government is giving a major thrust to the renewables including wind power and he hoped that a domestic market of wind power projects totalling 3.5 GW will roll out year-on-year.

He said the company expected accelerated depreciation benefit being restored for wind power and a boost for this form of renewable energy industry to come out of sluggish growth seen in the last 2-3 years.

"We have generation based incentive now and do not see any reason that accelerated depreciation benefit being restored as government has recognised the issue," Jain said.

Despite odds the the industry trend has been bucked and is profitable since 2011, Jain said. 

Speaking about application of the Rs 1,000 crore proposed from the IPO, Jain said the fund will be used for ramping up capacity, increasing land bank and enhancing power evacuation infrastructure, meeting working capital needs and other corporate purposes.

"Land bank and evacuation infrastructure have become critical component for wind turbine makers in India to roll out projects in turnkey basis for investors," he said.

Inox has a capacity of 800 MW for hub and 600 MW for turbines. Increase in the turbine capacity to 800 MW and plan to enhance the capacity of other components is in accordance with demand and orders.

After bagging a Rs 900 crore order for 170 MW wind power project at Madhya Pradesh recently with its newly launched 2-MW wind turbines, total order book position has touched 700 MW.

Jain aims to execute orders worth 500 MW by this fiscal and which may translate into a top line of Rs 3,000 crore in FY15.

Asked about his vision on overseas foray, Jain said a small team has been formed to study the possibility and is scouting opportunities.

"Prima facie there is opportunity in emerging markets like South Africa, Middle east, SE Asian countries, but we will evaluate it," Jain added.

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