Inox Clean Energy eyes ₹10,000-crore IPO; SEBI filing expected soon

Inox Clean Energy, the renewable energy arm of the INOXGFL Group, is preparing to file draft papers with the Securities and Exchange Board of India (SEBI) for a proposed ₹10,000 crore initial public offering (IPO), as reported by Moneycontrol

The company is looking to file the draft red herring prospectus (DRHP) by the end of September or early October, with the proposed issue expected to involve a stake sale of around 10%. The company is currently about 95% promoter-owned and is being valued at around ₹1 lakh crore, according to the report.

Nuvama, JM Financial and Emirates NBD have been appointed as investment bankers for the proposed issue.

Inox Clean Energy is an integrated renewable energy platform with businesses spanning power generation and solar manufacturing. Through Inox Neo Energies, it develops, acquires and operates wind, solar and hybrid power projects, while Inox Solar manufactures solar modules and cells in India and the US.

The company is expected to use the IPO proceeds for further acquisitions and debt reduction.

Inox Clean Energy's acquisition push

The proposed IPO comes after a rapid expansion in Inox Clean Energy's renewable energy portfolio. The company has announced or completed 10 acquisitions in India and overseas over the past year, building a business that now covers both renewable power generation and solar manufacturing.

One of its biggest deals was the ₹6,000 crore acquisition of Vena Energy India from Global Infrastructure Partners, which is now part of BlackRock. The portfolio included around 1 GW of operational renewable capacity, 1.7 GW of solar and wind projects and 1.2 GWh of battery energy storage system (BESS) assets at advanced stages of construction.

The deal took Inox Clean Energy's operating and near-operational portfolio to around 4 GW. Its development pipeline now exceeds 12 GW of solar and wind projects, along with 2.5 GWh of BESS capacity.

The company has also acquired Vibrant Energy from Macquarie, which had a 1,337 MW renewable portfolio, as well as nearly 300 MW of operating solar projects from SunSource Energy.

Other transactions include the acquisition of CalPERS-backed SkyPower's Indian and African businesses and a 640 MW hybrid portfolio from Evergreen Power. Inox Clean Energy has also emerged as the successful bidder for Wind World India's roughly 600 MW power-generation portfolio.

Its expansion has extended beyond India. The company acquired the US solar manufacturing assets of Boviet Solar for an enterprise value of around $750 million. The transaction gave Inox Clean access to a 3 GW operating module manufacturing facility and an agreement to acquire another 3 GW solar-cell facility in the US.

How is Inox Clean Energy funding its expansion?

The acquisition drive has been funded through a combination of equity and structured capital.

In January, Inox Clean Energy and its subsidiary Inox Solar raised around ₹3,100 crore from investors including CalPERS, SUN Group Global, Authum Investments and Akash Bhansali.

The company also raised capital from other investors during the year. In July, Rising Sun Holdings, the family office of Adar Poonawalla, invested ₹700 crore in the company at a valuation of ₹70,000 crore.

Motilal Oswal Group separately committed ₹1,500 crore through compulsorily convertible debentures, with ₹1,000 crore of that amount already deployed towards acquisitions and other growth initiatives.

Inox Clean Energy is promoted by the Vivek Jain-led INOXGFL Group, with his son Devansh Jain serving as executive director.

The INOXGFL Group is separate from the similarly named INOX Group, which controls Inox Air Products and listed cryogenic equipment maker Inox India. The two businesses were separated as part of a family settlement in 2021. Vivek Jain retained the specialty chemicals and renewable energy businesses, while Pavan Jain and Siddharth Jain retained the industrial gases, cryogenic equipment and multiplex businesses.

Also Read - PVR Inox shares crash 8%; What’s behind the sharp drop?