Inox Green Energy Services, a subsidiary of Inox Wind, has received capital markets regulator Sebi’s go ahead to raise up to Rs 740 crore through an initial public offering (IPO).
The IPO will comprise fresh issuance of equity shares worth Rs 370 crore and an offer-for-sale of equity stocks aggregating to Rs 370 crore by promoter Inox Wind, according to the Draft Red Herring Prospectus (DRHP). Besides, the company may consider a pre-IPO placement. If such a placement is completed, the fresh issue size will be reduced. Inox Green Energy Services, which had filed draft IPO papers with Sebi on June 20, obtained the observation letter from the regulator on September 13, an update with the capital markets watchdog showed on Monday.
The issuance of an observation letter by Sebi implies its go ahead to float the initial share sale. Going by the draft papers, proceeds from the fresh issue will be used for payment of debt and general corporate purposes. Inox Green Energy Services is engaged in the business of providing long-term Operation and Maintenance (O&M) services for wind farm projects, specifically for Wind Turbine Generators (WTGs) and common infrastructure facilities on wind farms, which support the evacuation of power from such WTGs.
Earlier, the company had filed the DRHP for its proposed IPO in February with the Sebi. However, the draft offer documents for the IPO were withdrawn in late April without disclosing any reason.