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Kolkata: Inox Clean Energy is a major solar power company which is headquartered in Noida. It is in the business of solar and wind energy projects and manufacturing part for the same. The company owns manufacturing units in Gujarat and another plant is coming up Dhenkanal of Odisha. Another group company Inox Solar Energy works as a trader/distributor in Rajkot.
According to reports, Inox Clean Energy is on an acquisition spree. It has done several major acquisitions in the past few months and a few more are in the pipeline. These acquisitions have substantially boosted the operational and pipeline IPP portfolio of Inox Clean Energy. Its solar manufacturing business has got a fillip too. All these important points are not mentioned the prospectus submitted by the company and the management wants to incorporate all of them in another revised prospectus.
Inox Clean Energy has bagged significant funding from private equity investors and the names include a very big name, state reports. This has helped Inox Clean Energy to mobilise nothing less than Rs 5,000 crore. But this is the first round of raising funds and the company is planning another one. This could include private placement to a few investors.
According to a CareEdge Ratings report, Inox Clean Energy has lined up capital expenditure of about Rs 6,500 crore to complete its under-construction renewable energy and manufacturing capacity unit in Odisha. Since this involves significant amounts, it could involve a combination of project debt, project cash flows and equity contributions from investors/promoters.
As the nomenclature implies, pre-IPO funding refers to capital that is raised by a firm before the public issue. This round helps the company prepare for public listing and mitigate a part of IPO risks. From the point of view of investors, it also makes sense since they can buy the shares at a lower price than will be available during the public issue since the pre-IPO round incorporates a higher degree of risk. In fact, it might as well be that the IPO gets cancelled or postponed (as has happened with this company).
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