Inox Green Energy Services scraps IPO plans; withdraws draft papers

Inox Wind on Friday said its arm Inox Green Energy Services Ltd (IGESL) has decided to withdraw its proposed Rs 740 crore initial share sale offer.

The Initial Public Offering (IPO) was slated to issue fresh shares worth Rs 370 crore, besides an Offer for Sale (OFS) of equity stocks aggregating to Rs 370 crore by Inox Wind.

The company had filed the Draft Red Herring Prospectus (DRHP) for the proposed IPO on February 7 with the Securities and Exchange Board of India (Sebi).

However, the draft offer documents for the IPO have been withdrawn on April 28 and the reasons for the withdrawal have not been disclosed.

"We have been informed by the IGESL that its board of directors vide their resolution passed by circulation dated April 28, 2022, the letter of consent from us dated April 28, 2022, and the resolution dated April 28, 2022 passed by our committee on operations, has decided to withdraw the DRHP filed with Sebi, and accordingly, the DRHP has been withdrawn on April 28, 2022 vide letter dated April 28, 2022 from the book running lead managers to the offer," Inox Wind said in a regulatory filing to the BSE.

Any company looking to raise funds through sale of shares to public investors by way of instruments such as IPO needs to get a clearance from Sebi for the same.

Proceeds of the proposed issue was to be utilised for payment of debt and general corporate purpose.

IGESL is engaged in the business of providing long term operation and maintenance (O&M) services for wind farm projects, specifically for wind turbine generators (WTGs) and the common infrastructure facilities on the wind farm, which support the evacuation of power from such WTGs.