Inox Green Energy Services files DRHP with SEBI. Inox Green Energy Services Limited (IGESL) is a major wind power operation and maintenance (“O&M”) service provider within India. The Company is a subsidiary of Inox Wind Limited (“IWL”) which is listed on the National Stock Exchange of India Limited and BSE Limited and is part of the Inox GFL group of companies (“Inox GFL Group”).
Inox Green Energy Services Limited has filed DRHP with SEBI on 7th February 2022. The company plans to raise funds through initial public offering (IPO) aggregating up to Rs. 740 crore comprising of a fresh issue of equity shares aggregating up to Rs. 370 crore and a offer for sale aggregating up to Rs. 370 crore. IGESL intend to utilise net proceed from the issue towards Repayment and/or pre-payment, in full or part, of certain borrowings availed by our Company .including redemption of Non-Convertible Debentures in full aggregating to Rs. 260 crore and balance amount for general corporate purpose.
IGESL is engaged in the business of providing long-term O&M services for wind farm projects, specifically the provision of O&M services for wind turbine generators (“WTGs”) and the common infrastructure facilities on the wind farm which support the evacuation of power from such WTGs.
Company has an established track record in the wind energy O&M industry of more than nine years due in large part to the synergistic relationship we share with its parent company, IWL, which commenced operations in the wind energy space in the financial year ended March 31, 2010. It enjoy synergistic benefits as a subsidiary of IWL, which is principally engaged in the business of manufacturing WTGs and providing turnkey solutions by supplying WTGs. It offers a variety of services including wind resource assessment, site acquisition, infrastructure development, EPC of WTGs and through it providing long-term O&M services for wind power projects.
Pursuant to an exclusivity agreement between IWL and the company, it provide exclusive O&M services for all WTGs sold by IWL through the entry of long-term O&M contracts between the WTG purchaser and the company for terms which typically range between five to 20 years. Due to this exclusivity agreement, IWL’s order book is an important indicator of future revenue and growth for the company.
As of December 31, 2021, its portfolio of O&M contracts (consisting of both comprehensive O&M contracts and common infrastructure O&M contracts) covered an aggregate of 2,706 MW of wind projects spread across eight wind-resource rich states in India with an average remaining project life of more than 20 years. The counterparties to O&M contracts feature a mix of leading independent power producers (“IPPs”) (approximately 71.00%), public sector undertakings (“PSUs”) (approximately 15.00%) and corporates (approximately 14.00%). There is also significant capacity base at individual wind projects sites which it, together with IWL, have developed which 162 facilitates the future installation of WTGs and which it believe will enable it to benefit from economies of scale.
As of December 31, 2021, the consolidated order book of IWL stood at an aggregate capacity of 1,298.7 MW, comprising binding contracts for the supply of 2 MW capacity WTGs with an aggregate capacity of 774 MW and letters of intent, which are subject to the execution of binding contracts, for its new 3.3 MW capacity WTGs with an aggregate capacity of 524.7 MW. Its O&M services portfolio consisted of an aggregate 2,706 MW of wind farm capacity and 1,353 WTGs. This included a total capacity of 1,138 MW for various customers in Mahidad, Rojmal, Sadla, Savarkundla and Dayapar in Gujarat; a total capacity of 632 MW for various customers in Kukru, Nipaniya, Jaora and Lahori in Madhya Pradesh; a total capacity of 556 MW for various customers in Dangri, Rajasthan; and a total capacity of 196 MW for various customers in Vaspet, Bhendewade and South Budh in Maharashtra.
Of the 2,706 MW capacity, 2,034 MW was attributable to its contracts for comprehensive O&M services and 672 MW was attributable to common infrastructure O&M contracts. In general, its comprehensive O&M contracts cover the provision of O&M services to both WTGs installed on a wind farm and the common infrastructure facilities, such as electrical substations and transmission lines, which support the wind farm; its common infrastructure O&M contracts relate only to the provision of O&M services on the common infrastructure facilities.