Inox Clean Energy ₹10,000 Crore IPO Put on Hold by SEBI Amid INOXGFL Group Investigations
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Inox Clean Energy's IPO clearance remains pending as regulatory scrutiny involving group entities continues. The proposed offer includes ₹8,000 crore in fresh shares, with a large portion of the proceeds planned for debt repayment.
The ₹10,000 crore Inox Clean Energy IPO has been kept in abeyance by the Securities and Exchange Board of India (SEBI) amid ongoing investigations involving entities of the INOXGFL Group, Moneycontrol reported on October 6, citing sources familiar with the matter.
SEBI had earlier disclosed that issuance of observations on Inox Clean Energy's draft IPO papers had been kept in abeyance, but did not specify a reason. The company filed its draft red herring prospectus (DRHP) on September 29 for an IPO comprising an ₹8,000 crore fresh issue and a ₹2,000 crore offer for sale by promoter Devansh Jain.
According to the report, the regulatory scrutiny includes transactions through which listed group company Inox Green Energy Services divested its holdings in Inox Clean Energy and three subsidiaries. Inox Clean Energy's DRHP also discloses separate SEBI scrutiny involving Inox Wind's financial disclosures and transactions, as well as a summons issued to Jain in connection with an investigation into trading in PVR Inox shares.
SEBI's decision does not amount to rejection of the IPO. It means the regulator's observations on the draft offer documents have been kept pending while the relevant matters remain under scrutiny.
Inox Clean Energy IPO Faces SEBI Scrutiny
Inox Green Energy Services had transferred its entire holding in Inox Clean Energy to IGREL Renewables in November 2024. The DRHP shows SEBI subsequently sought information over the transaction, including the difference between the ₹290 crore consideration approved by Inox Green's board and shareholders and the ₹90 crore reflected as received in its FY25 standalone accounts.
Inox Green told the regulator that ₹290 crore represented the enterprise value of the transaction, including about ₹200 crore towards repayment of Inox Clean Energy's Power Finance Corporation loan and ₹90 crore as equity consideration.
SEBI also sought information relating to Inox Green's divestment of Inox Neo Energies, Flurry Wind Energy and Flutter Wind Energy to Inox Clean Energy at face value. The scrutiny included Inox Neo, which subsequently raised around ₹292 crore by issuing shares at ₹265 apiece.
Inox Green said the subsidiaries did not have operations or revenue-generating assets when they were sold and that the consideration reflected their book value.
The regulator subsequently sought clarifications in February and March 2026 over two valuation reports dated October 20, 2023, which carried materially different valuations for Inox Clean Energy.
Inox Green attributed the difference to an inadvertent omission of a debt adjustment in the initial valuation report and said the corrected report was used for the relevant approvals and audit.
The DRHP states that no show-cause notice, order or adjudication proceedings had been initiated by SEBI against Inox Green as of the filing date. It also notes that a favourable outcome of the inquiry cannot be assured.
Separately, Inox Wind has received SEBI summons relating to financial disclosures and business transactions, according to the draft prospectus. The disclosures also refer to queries concerning suspected insider trading by certain entities in Inox Wind shares.
Promoter Devansh Jain received a separate summons relating to SEBI's investigation into trading in PVR Inox shares for potential securities-law violations. The DRHP states that Inox Wind and Jain have responded to the regulator.
Inox Clean Energy ₹10,000 Crore IPO Details
Inox Clean Energy's proposed ₹10,000 crore IPO comprises ₹8,000 crore of fresh shares and a ₹2,000 crore OFS by Devansh Jain.
The renewable energy company proposes to use ₹6,000 crore from the fresh issue proceeds towards repayment or prepayment of borrowings, with the remaining amount earmarked for general corporate purposes.
Its consolidated outstanding borrowings stood at ₹16,781.8 crore as of August 2026.
Inox Clean Energy operates across renewable power generation and solar manufacturing. Its renewable independent power producer portfolio stood at 9.29 GW as of August 31, including 2.37 GW of operational capacity, according to the DRHP.
The company also has 6 GW of operational solar module manufacturing capacity across India and the US.
The timeline for SEBI's observations on the draft IPO papers remains uncertain while the matter is kept in abeyance.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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