IPOs | Latest IPOs News | Upcoming IPOs | Inox Green Energy Services | IPO advise | IPO call | IPO recommendation | IPO allotment Status| Financials | Shareholding

Industry : RENEWABLE ENERGY

Inox Green Energy Services View all IPOs

Price Band

Rs. 61 - 65

INOX GREEN ENERGY is going public with a Fresh Issue and an Offer for Sale. Issue opens on 11th November 2022.

MOJO CALL

Why

Avoid

MOJO CALL

Avoid

Neutral

1. Poor Financials

Inox Green reported losses for the fiscal year ended March 2022 as well as the first quarter ended June 2022.
As of June 2022, the company had total borrowings of Rs 910 crore, compared to annual sales of Rs 172 crore.
Despite the fact that the company will use some of the proceeds from the IPO to repay Rs 260 crore of debt, we believe that debt will be substantial given the company's size.
The company intends to sell its 50 MW power plant, which could fetch Rs 300 crore, but no timetable has been set

2. Valuations

The company's market cap will be Rs 1897 crore (based on the upper band), which we believe is a rich valuation given its losses and higher borrowings in the books.
A market cap to sales ratio of 11x suggests that the company is demanding a high valuation.

This analysis takes into account the company's future rather than listing gains. It is also not based on our big data analysis.

Issue Details

Issue Opens	11th November 2022
Issue Closes	15th November 2022
Price Band	Rs. 61 - 65
Issue size (Upper Band)	Rs. 740 Crs
Issue Type	Fresh Issue & OFS
Market cap (based on upper band)	Rs. 1897 Crs
Sales-March 2022 (Rs. Crs)	Rs. 172 Crs
Net Profit / Loss- March 2022 (Rs. Crs)	Rs. -5 Crs
Industry	RENEWABLE ENERGY
Promoters	INOX WIND LIMITED
Lead Manager	EDELWEISS FINANCIAL SERVICES LIMITED

Objective of the Issue

Details

Offer Objectives:

Repayment and/or pre-payment of company borrowings, in full or part.

General corporate purposes.

List of Shareholders Selling Their Stake

NAME	TYPE	Proceeds from Sale of Equity Shares for OFS	% of Total Offering (OFS)
INOX WIND LIMITED	Promoter	Rs. 370 Crs	100

Business Operations

About Company

Inox Green is a subsidiary of Inox Wind (a listed entity with market cap of Rs 3750 Crore). Inox Wind, in turn is a subsidiary of another listed company Inox Wind Energy Ltd (market cap of Rs 1254 Crore).

The company provides wind power operation and maintenance ("O&M"). This is mainly to Wind Turbine Generators (WTG) manufactured by Inox Wind.

As of June 30, 2022, our O&M services portfolio consisted of an aggregate 2,792 MW of wind farm capacity and 1,396 WTGs.

Diversified Customer Base
Customers	As of June 2022
Independent Power Producers	72%
Public Sector Undertakings	14%
Corporates	14%

Financials

Financial Overview

In FY22, the company reported a revenue of over Rs. 172 crores and a net loss of Rs. 5 crores.

In the last two fiscal years, as well as the June 22 quarter, the company has reported a net loss. The losses in FY21 stood at Rs. 28 crores.

As of June 22, the company's borrowings totaled Rs. 910 crores.

Financial Performance (Rs/crore)

(Rs/cr)	Qtr	Annual	Annual	Annual
	Jun-22	Mar-22	Mar-21	Mar-20
Sales	62	172	172	165
Net profit	-12	-5	-28	1.7