Inox Wind to raise Rs 1,000 cr in biggest IPO since Dec 2012

Price band Rs 315-325 a share, with additional discount of Rs 15 per share to retail investors

Wind power solution firm Inox Wind plans to raise Rs 1,000 crore through an initial public offering (IPO), which will remain open between March 17 and March 20.

The offering, the third to come to the market this month, will be the largest IPO since December 2002.

Inox Wind has set the price band between Rs 315 and Rs 325 a share. It is providing an additional discount of Rs 15 a share to retail investors.

The issue comprises 31.5 million shares, of which a third will be ‘offer for sale’ by existing promoter Gujarat Fluorochemicals, a manufacturer of speciality chemicals used in refrigeration. Inox Wind expects to raise Rs 700 crore by issue of fresh equity in the IPO to help meet its working capital requirements.

The issue is managed by four investment banks — Axis Capital, Bank of America Merrill Lynch, Edelweiss Capital and YES Bank.

The IPO comes at a time when the primary market is seeing initial signs of a revival. Despite a robust rally in the stock market, very few companies have launched public offerings in the past year. In 2014, only five companies came out with IPOs to raise a combined Rs 1,200 crore, the lowest in a decade.

The going has not been easy for the two IPOs, which have come to the market this year. The Rs 70 crore-IPO of NCML Industries in January failed to go through owing to poor investor demand. Last week, Ortel Communications’ Rs 240-crore IPO remained under-subscribed, forcing the issuer to cut the issue size.

Meanwhile, Adlabs Entertainment’s Rs 450-crore IPO had received only 10 per cent subscription a day before close.