The Economic Times: March 16, 2015
New Delhi: Inox Wind Ltd, a subsidiary of Gujarat Fluorochemicals and a wind energy solutions provider, plans to double its manufacturing capacity to 1,600 MW at a total investment of Rs 200 crore by the end of next financial year.
Inox Wind has manufacturing units at Una in Himachal Pradesh and Rohika in Gujarat. The company has started construction of an integrated manufacturing facility at Barwani in Madhya Pradesh which will be commissioned in phases over the next 12 months.
"We intend to invest about Rs 150 crore from the proceeds of the issue to augment our manufacturing facilities and expand our capacity. We intend to expand the capacity from about 800 MW right now to about 1600 mw in phases over the next financial year," Deepak Asher, director at Inox Wind said, adding the remaining Rs 50 crore would be invested through internal accruals.
Inox Wind will hit the market on March 18 with an initial public offer of up to Rs 700 crore and an offer for sale of 1 crore shares held by Gujarat Fluorochemicals.
The price band for the issue, which closes on March 20, is fixed at Rs 315-325 per share. The total size of the issue is seen at Rs 1,025 crore based on the upper band, said Devansh Jain, director at Inox Wind. Post the issue, about 95% of the company's paid-up capital will continue to remain with the current promoters, Asher said.
The company plans to use around Rs 300 crore from the issue on augmenting its long-term working capital requirement, Rs 150 crore for capacity expansion, and a similar amount on site infrastructure while the rest Rs 100 crore would be spent on meeting general corporate expenses. The shares of Inox Wind will be listed both on BSE and NSE.
Axis Capital DSP Merrill Lynch, Edelweiss Financial Services and Yes bank are managers to the issue.
Apart from expanding domestically, Inox Wind has set sights on the international market for growth opportunities. The company, however, refused to elaborate on its plans.
"We will, as a growth strategy, evaluate the possibilities of growth outside India," Asher said, adding the domestic market also has immense growth opportunities to offer with the government's recent impetus on clean energy and investor-friendly policies.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.