Inox Green Energy Services IPO: All You Need to Know


The IPO mania continues in Dalal Street! Inox Green Energy Services Ltd has launched its initial public offering (IPO) today— Nov 11. It is the fourth IPO to hit the markets this week. In this article, we dive into the company and its IPO.

Company Profile - Inox Green Energy Services Ltd

Inox Green Energy Services Ltd (IGESL) is one of the leading wind power operation and maintenance (O&M) service providers in India. It is a subsidiary of Inox Wind Ltd (a listed company) and part of the Inox GFL Group. Established in 2012, IGESL provides long-term O&M services for wind farm projects.

IGESL exclusively operates and maintains all wind turbine generators (WTG) sold by Inox Wind by entering into contracts with WTG purchasers. These contracts range between 5 to 20 years. The company also offers O&M services for common infrastructure facilities such as electrical substations and transmission lines that support wind farms. They have a dedicated onsite team to provide 24x7 operation services for their customers’ wind farms to help ensure that their WTGs are generating the highest yield possible.

As of June 30, 2022, IGEL’s O&M services portfolio consists of an aggregate of 2,792 megawatts MW) of wind farm capacity and 1,396 WTGs. The company has a presence in Gujarat, Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Kerela, and Tamil Nadu.

About the IPO

Inox Green Energy’s public issue opens on Nov 11 and closes on Nov 15. The company has fixed ₹61-65 per share as the price band for the IPO.

The fresh issue of shares (of the face value of ₹10 each) aggregates to ₹370 crore. The IPO also includes an offer for sale (OFS) of 5.6 crore shares by promoters and early investors, aggregating to ₹370 crore. Individual investors can bid for a minimum of 230 equity shares (1 lot) and in multiples of 230 shares thereafter. You will need a minimum of ₹14,950 (at the cut-off price) to apply for this IPO. The maximum number of shares that can be applied by a retail investor is 2,990 equity shares (13 lots).

IGESL will utilise the net proceeds from the IPO for the following purposes:

  • Repayment or prepayment of certain borrowings, including redemption of non-convertible debentures (NCDs) in full - ₹260 crore.
  • General corporate purposes.

The total promoter holding in the company will decline from 93.84% to 56.04% post the IPO.

Financial Performance

Inox Green Energy Services has posted losses for the last two financial years (FY21-22). The management clarified that the company’s losses were due to increased interest burden and amortisation provisions. [Amortisation is an accounting strategy used to regularly reduce the book value of a loan or an intangible asset over a certain period.] Through the proceeds of this IPO, IGESL will be able to reduce its loan and interest burden, which should result in an improvement in its margins. Moreover, the company has stable/reliable cash flows supported by long-term O&M contracts.

During the quarter ended June 30, 2022 (Q1 FY23), it reported a loss of ₹11.58 crore and a total revenue of ₹63.16 crore.

Risk Factors

  • The company is entirely dependent on the promoter (Inox Wind) for its business. If IWL chooses any other service provider for operation & maintenance services of wind turbine generators, IGESL’s financial performance would be adversely affected.
  • Orders from IWL may get delayed, modified, or cancelled, which may impact future O&M revenue.
  • The sale of services and renewal rate of service contracts may decline in the future. 
  • IGESL is liable for penalties under its maintenance contracts in case of any deficiencies in the services provided.
  • There are outstanding legal proceedings involving IGESL, its subsidiaries, directors, and group firms.

IPO Details in a Nutshell

IGESL filed the Red Herring Prospectus (RHP) for its IPO on Nov 3. You can read it here. Out of the total offer, 75% is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 10% for retail investors.

Ahead of the IPO, the company raised ₹333 crore from anchor investors. The marquee investors include Morgan Stanley Asia (Singapore), Nomura Singapore, HDFC Mutual Fund (MF), ICICI Prudential MF, etc.


According to the International Energy Agency (IEA), India is the third-largest energy-consuming country in the world and has become one of the largest sources of energy demand growth globally. The Central govt. aims to add 30 gigawatts (GW) of offshore wind projects by 2030. The key strengths of IGESL include its strong/diverse portfolio, established track record, and reliable cash flows

Going forward, the company plans to expand its portfolio and scale operations while transitioning to an asset-light model with minimal capital expenditure. The favourable national renewable energy policy also provides strong visibility for growth.

The company has not received much interest in the grey market. IGESL’s IPO shares are trading at a premium of ₹9-10 in the unofficial market. Before applying to this IPO, we will wait to see if the portion reserved for institutional investors gets oversubscribed. As always, do consider the risks associated with the company and come to your own conclusion.

What are your opinions on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.

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