Inox Clean Energy likely to file draft papers for ₹10,000-crore IPO by month-end

Inox Clean Energy, the renewable energy arm of the INOXGFL Group, is likely to file draft papers for a ₹10,000-crore initial public offering (IPO) with the Securities and Exchange Board of India (Sebi) by the end of September or early October, industry sources told Fortune India. The company is looking at a valuation of around ₹1 lakh crore, a source said.

If launched as planned, the IPO would be the largest offering in India’s clean energy and renewables sector, surpassing proposed issues such as Waaree Energies’ ₹4,300 crore, Clean Max Enviro Energy’s ₹3,100 crore and Juniper Green’s ₹1,800 crore offerings.

The promoters currently hold around 95% of the company, and could potentially dilute around 10% through an offer for sale (OFS) as part of the proposed IPO, the source said.

Inox Clean Energy is also expected to become the fourth listed entity of the INOXGFL Group, joining Gujarat Fluorochemicals (GFL), Inox Wind and Inox Green Energy Services on the domestic bourses. The INOXGFL Group is led by Vivek Jain and Devansh Jain.

Completed 10 acquisitions in a year

The proposed IPO follows a rapid expansion of Inox Clean Energy’s renewable energy portfolio, with around 10 acquisitions announced or completed in India and overseas over the past year. The company has expanded across renewable power generation and solar manufacturing.

A key transaction was the ₹6,000-crore acquisition of Vena Energy India from Global Infrastructure Partners, now part of BlackRock. The deal added around 1 GW of operational capacity, 1.7 GW of solar and wind projects and 1.2 GWh of battery energy storage system (BESS) assets, taking Inox Clean Energy’s operating and near-operational portfolio to around 4 GW.

The company has also acquired Vibrant Energy’s 1,337 MW portfolio from Macquarie, nearly 300 MW of operating solar projects from SunSource Energy and CalPERS-backed SkyPower’s Indian and African businesses. Other deals include a 640 MW hybrid portfolio from Evergreen Power and Wind World India’s roughly 600 MW power-generation portfolio.

Overseas, Inox Clean Energy acquired Boviet Solar’s US manufacturing assets for around $750 million, gaining access to a 3 GW operating module manufacturing facility and another 3 GW solar-cell facility.

How is Inox Clean Energy funding its expansion?

The acquisition spree has been funded through a mix of equity and structured capital. In January, Inox Clean Energy and its subsidiary Inox Solar raised around ₹3,100 crore from investors including CalPERS, SUN Group Global, Authum Investments and Akash Bhansali.

In July, Rising Sun Holdings, the family office of Adar Poonawalla, invested ₹700 crore in the company. Separately, the Motilal Oswal Group has committed ₹1,500 crore through compulsorily convertible debentures (CCDs), of which ₹1,000 crore has already been invested. The funds are primarily being used to support acquisitions and other growth initiatives.

Eight banks have been appointed as the book-running lead managers for the Inox Clean Energy IPO, including JM Financial, IIFL Securities, ICICI Securities and UBS.