Inox Green Energy Services IPO

Inox Green Energy Services Limited which is backed by Inox Wind is a prominent provider of wind power operation and maintenance services in India. Inox Green Energy Services IPO will hit the stock market in 11 November 2022.

About Inox Green Energy

Their company is in the business of providing long-term operations and maintenance  services for wind farm projects, particularly for wind turbine generators and the common infrastructure facilities on the wind farm that allow the power evacuation from certain WTGs.

Due to the sheer long-term O&M contracts they have with their customers, they enjoy a consistent annual income.  They are a subsidiary of Inox Wind Limited,  a corporation that is a member of the Inox GFL group of companies and is listed on the National Stock Exchange of India Limited and the BSE Limited.

As a subsidiary of IWL, which is primarily in the business of producing WTGs and offering turnkey solutions by supplying WTGs, they benefit from synergistic benefits.

Business Model

They offer exclusive O&M services for all WTGs supplied by IWL via the channel, thanks to an exclusivity agreement between IWL and their Company.

Long-term O&M contracts are entered into between the WTG purchaser and ourselves, with durations ranging from five to twenty years. IWL’s order book is a significant indicator of future revenue and growth for the firm because of this exclusive arrangement.

IWL’s consolidated order book had an aggregate capacity of 1,298.7 MW, with contractual agreements for the supply of 2 MW capacity WTGs with an aggregate capacity of 774 MW and letters of intent for its new 3.3 MW capacity WTGs with an aggregate capacity of 524.7 MW, which are subject to the action of legal contracts.

Capacity

Their offering of O&M services included 2,706 MW of wind farm capacity and 1,353 WTGs. This includes 1,138 MW of capacity for several clients in Gujarat’s Mahidad, Rojmal, Sadla, Savarkundla, and Dayapar.

A total output of 632 MW for clients in Madhya Pradesh’s Kukru, Nipaniya, Jaora, and Lahori; a total capacity of 556 MW for clients in Rajasthan’s Dangri; and a total output of 196 MW for clients in Maharashtra’s Vaspet, Bhendewade, and South Budh.

Their contracts for complete O&M services accounted for 2,034 MW of the 2,706 MW capacity, while their common infrastructure O&M contracts accounted for 672 MW. They can be found in almost all of India’s wind-rich states.

Inox Green Energy Services IPO

Inox Green Energy Services Limited, headquartered in Vadodara has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 370 Crore & 370 crore value equity shares on 04 February 2022.

The offer includes a fresh issue of INR 370 crore and there is offer for sale (OFS) of 370 crore value equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 70 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	2,016.68	2,692.80	2,339.86	1,901.57
Total Revenue	129.73	186.29	172.16	166.40
Loss After Tax	( 91.24)	(153.52)	( 52.26)	(52.81)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(2.29)	(2.29)	3
Financial Year 2020	0.20	0.20	2
Financial Year 2019	6.98	6.98	1
Weighted Average	0.09	0.09
30 Dec. 2021	(0.15)	(0.15)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the qualitative elements that go into determining the Offer Price:

• Current portfolio is solid and broad.
• A proven track record, positive national policy support, and the potential for future expansion are all advantages.
• Long-term O&M contracts with good credit quality counterparties provide consistent cash flow.
• IWL, our parent firm, has backed and promoted them.
• There is a well-established supply network in place.
• Management staff with a wealth of experience.

Inox Green Energy Services Comparison

There are no publicly traded organizations in India that operate in a similar industry to theirs. As a result, providing an industry analysis in relation to their company is impossible.

Inox Green Energy Services IPO Details

IPO Opening Date	11 November 2022
IPO Closing Date	15 November 2022
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	740 Crore
Fresh Issue	370 Crore
Offer for Sale	370 Crore value Equity Shares

Inox Green Energy Services IPO Date

Inox Green Energy IPO opening date is 11 November 2022, and the closing date is 15 November 2022. The inox green energy ipo issue may list on 23 November 2022.

IPO Opening Date	11 November 2022
IPO Closing Date	15 November 2022
Basis of Allotment Date	18 November 2022
Initiation of Refunds	21 November 2022
Credit of Shares to Demat Account	22 November 2022
IPO Listing Date	23 November 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Inox Green IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Inox Green Energy IPO.

Inox Green Energy Services IPO GMP

Inox Green IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2022
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November 2022
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November 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Inox Green Energy IPO Review

Inox Green Energy IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Inox Green Energy Services IPO is good or bad.

Inox Green Energy IPO Risk

1. They are currently completely reliant on Inox Wind; however, if Inox Wind chooses a different service provider to supply O&M services for their WTGs, their business may suffer.
2. The sale of services and the rate at which service contracts are renewed may decline in the future.
3. The coronavirus pandemic could have a substantial negative impact on company operations and business.
4. Failures or breakthroughs in technology could affect their operations.
5. They have engaged into a business transfer agreement, under which they have transferred their EPC company to one of their Promoter’s subsidiaries, Resco Global Wind Services Private.
6. In the event of any inadequacies in the services they provide, they may be liable for penalties and other responsibilities under their O&M contracts.

Other Threats

1. They had previously reported a restated loss and may face additional losses in the future.
2. They have amassed enormous debt and may be unable to meet their debt service commitments on schedule or adhere to various financial and other covenants and other terms and conditions of their financing contracts.
3. They rely heavily on the ‘Inox GFL’ brand name for their company, and its dilution could have a negative impact.
4. Their Company, Directors, and Promoter are all involved in ongoing legal proceedings.
5. The cost of wind-produced electricity relative to electricity generated from other sources determines the demand for wind power plants and, as a result, their services.
6. They might not be able to adequately control their future expansion and growth.

Track Record

They have a more than nine-year track record in the wind energy O&M market, thanks in part to the synergistic relationship they have with their parent company, IWL, which began operations in the wind energy space in the fiscal year ended March 31, 2010.

Their operating portfolio of O&M contracts (both comprehensive and common infrastructure O&M contracts) has expanded at a compound annual growth rate of about 45.26 percent in the nine years since they began operations.

According to the International Energy Agency, India is the world’s third-largest energy consumer and also the world’s fastest-growing sources of energy consumption.

According to the IEA’s recent Energy Outlook 2021 study, India could add 900 GW of wind and solar power by 2040.

Inox Green Energy IPO Brokerage views

Here is the views of different stock brokers regarding this IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Inox Green Energy IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
11 November 2022	1
14 November 2022	2
15 November 2022	3

Management

They have a strong team of 389 people, including supervisors with vast experience in the operation and maintenance of wind turbine generators and the wind sector in general.

Their senior managers, who are in charge of project management, business development, customer relationship management, project coordination, wind farm governance, turbine testing, and workflow enhancement, are well-educated in engineering, design, and business administration, with an average of more than 10 years of experience in their fields and significant experience in the wind energy industry.

Their O&M team attends monthly trainings to keep up with industry best practises and to improve their technical, safety, and behavioural abilities. They host workshops that cover a variety of technical topics.

Promoters

• Inox Wind Limited

Promoter’s Holding

Pre Issue Share Holding	93.84%
Post Issue Share Holding

Inox Green Energy Services Prospectus