Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on August 5, 2025
- The company is a fully integrated player in wind energy sector with related services.
• It merged a group company that helped it to post improved financial data.
• Based on its recent financial performance, the issue appears fully priced.
• The company has bright prospects ahead with rising renewal energy play.
• Well-informed investors may park moderate funds for long term.
ABOUT COMPANY:
Inox Wind Ltd. (IWL) is a a fully integrated player in the wind energy sector, providing comprehensive turnkey solutions to independent power producers (“IPPs”), public sector undertakings (“PSUs”), commercial and industrial (“C&I”) and retail customers in India. It manufactures wind turbine generators (“WTGs”) and, through its subsidiaries, provide wind turnkey solutions, renewables engineering, procurement and construction (“EPC”), and operations and maintenance (“O&M”) services. Through its Material Subsidiary, Inox Renewable Solutions Limited (“IRSL”) the company delivers turnkey solutions by supplying WTGs and offering services including wind resource assessment, site acquisition, infrastructure development, as well as EPC of projects.
Its other Material Subsidiary, Inox Green Energy Services Limited (“IGESL”) is responsible for providing long-term O&M solutions and common infrastructure facilities for WTGs and solar modules. During Fiscal 2025, its total consolidated revenue was Rs. 3701.55 cr. and profit after tax on a consolidated basis was Rs. 437.62 cr.
It is a part of the INOXGFL Group, a diversified Indian industrial group, with business interests in renewable energy, specialty chemicals, refrigerant gases and engineering solutions. As of March 31, 2025, the INOXGFL Group had four publicly listed companies in India (IWL, Gujarat Fluorochemicals Limited, IGESL and Inox Wind Energy Limited (“IWEL”)), with a combined market capitalization of Rs. 81413 cr. (based on the closing price of equity shares as of March 28, 2025), on BSE Limited (“BSE”). Pursuant to the order received on June 10, 2025, passed by the NCLT, its erstwhile corporate promoter IWEL, is in the process of being merged with the Company.
IWL manufactures nacelles and hubs at manufacturing facilities located in Una in Himachal Pradesh and Bhuj in Gujarat. Its rotor blade and tower manufacturing are carried out at plant in Rohika in Ahmedabad, Gujarat and Barwani in Madhya Pradesh. The company holds certifications including ISO 9001:2008 (quality management), ISO 14001:2004 (environmental management) and OHSAS 18001:2007 (occupational health and safety) standards. In addition, its tower manufacturing facility at Barwani in Madhya Pradesh is accredited under ISO 3834-2 for welding quality assurance.
IWL specializes in the production of 2 MW and 3 MW WTGs and have also obtained licenses for 4 MW WTGs. Its portfolio includes high quality WTGs, such as INOX DF 2000 available with rotor diameters 93, 100 and 113 meters, and the DF 3000/3300 with a rotor diameter of 145 meters. These WTGs are certified by global certification bodies and are listed in the Revised List of Models and Manufacturers of Turbines (“RLMM”) published by the Ministry of New and Renewable Energy’s (“MNRE”). As of March 31, 2025, it had 1,235 permanent employees and 147 temporary employees and additional 670 contract workers in various departments.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 104110712 equity shares of Rs. 10 each at a fixed price of Rs. 120.00 per share to mobilize Rs. 1249.33 cr. The RI is opening for subscription on August 06, 2025, and will close on August 20, 2025. The company is offering RI in the ratio of 5 for 78 to its eligible stakeholders as of the record date of July 29, 2025.
The company is asking for full money on application for number of shares applied. Post allotment, shares will be listed on BSE and NSE. The company is spending Rs. 6.63 cr. for this RI process, and from the net proceeds, it will utilize Rs. 560.00 cr. for repayment/redemption of NCPRPS issued to promoter, Rs. 159.00 cr. for prepayment/repayment of certain borrowings, Rs. 250.00 cr. for investment in IRSL, and Rs. 273.70 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue. Motilal Oswal Investment Advisors Ltd. is the advisor to the issue.
Post RI, company’s current paid-up equity capital of Rs. 1624.13 cr. will stand enhanced to Rs. 1728.24 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 20738.85 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, it has posted a total income/ net profit, of Rs. 18080.20 cr. / Rs. – (48.16) cr. (FY24), Rs. 37015.46 cr. / Rs. 437.63 cr. (FY25). As of March 31, 2025, its NAV stood at Rs. 30.70 per share against Rs. 70.60 per share a year ago period. This is attributed to its merger with a group company.
DIVIDEND POLICY:
The offer document is silent on its dividend policy. The company has not declared any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 539083 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 157.05 on July 28, 2025, 2025, and opened on an ex-right basis at Rs. 155.95 on July 29, 2025. Since then, it has marked a high/low of Rs. 157.30 / Rs. 150.00. The scrip last closed at Rs. 151.40 as of August 05, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 258.43 / Rs. 128.38.
The promoters’ holding has declined to 44.18% for the last two quarters ended with June 30, 2025, against 48.27% as of December 31, 2024. The counter is currently trading above its RI price to tempt investors.
Conclusion / Investment Strategy
IWL is a fully integrated player in wind energy sector with related services. It merged a group company that helped it to post improved financial data. Based on its recent financial performance, the issue appears fully priced. The company has bright prospects ahead with rising renewal energy play. Following merger, it is heading for better synergy ahead. Well-informed investors may park moderate funds for long term.
Review By Dilip Davda on August 5, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
