Inox Wind on Monday said its board of directors have put forth a proposal for raising funds worth Rs 500 crores via an initial public offer of the company's wholly-owned subsidiary, Inox Green Energy Services Limited. Inox Wind stated that the proposed initial public offering would be for equity share with a face value of Rs 10 each of the subsidiary itself.
The company informed the transaction would be subject to receipt of requisite approvals from shareholders, market and other necessary considerations.
"Board of Directors of the Company’s material subsidiary, Inox Green Energy Services Limited in their meeting held today...approved fundraising, subject to receipt of requisite approvals including the approval of the shareholders, market conditions and other considerations, by way of an initial public offer of its Equity Shares comprising of fresh issue of Equity Shares aggregating up to Rs. 500 Crore (“Fresh Issue”) and/ or an offer of sale of Equity Shares by certain existing and eligible shareholders of the company," the company stated in a regulatory filing to the Bombay stock exchange.
Energy solutions provider Inox Wind deals in independent power parts like blades, tubular towers, nacelles, among others. It claims to be a fully integrated player in the wind energy market with three state-of-the-art manufacturing plants in Gujarat, Himachal Pradesh and Madhya Pradesh.
The country is garnering sizeable interest in renewable energy. This follows the ambitious targets announced for the country by Prime Minister Narendra Modi at COP26 Summit early in November. He had outlined that India would be achieving its net zero emissions target by 2070. Additionally, India will try to increase its low-carbon power capacity to 500 gigawatts (GW) by 2030 and meet 50 per cent of its total energy requirements by 2030.
At the time of publishing, the company's stock closed 5.88 per cent lower at Rs 137.70 on the BSE. On the NSE, the stock closed 6.15 per cent higher at Rs 136.60.