Inox Wind has received a 166 mw contract from Green Infra, a company promoted by IDFC PE Fund, to set up projects in Gujarat, Madhya Pradesh and Rajasthan in the sector where the government has restored tax benefits to promote clean energy.
Inox Wind, part of the $2 billion (about Rs 12,400 crore) Inox group that has interests in multixplexes, cryogenic technology refrigerants and industrial gases, is a subsidiary of Gujarat Fluorochemicals.
Under the contract, the company will develop and construct the projects on a turnkey basis, supply 83 units of 2 mw wind turbine generators and undertake long-term operations and maintenance, said Devansh Jain, director, Inox Wind. The projects are likely to be commissioned in phases by December.
While Jain did not divulge the total value of the order, according to market experts an investment of about Rs 6 crore is required per megawatt of wind power. The government’s thrust on renewable sector has boosted investor sentiment and attracted several companies to wind and solar power generation. Companies like Suzlon are counting on revival of the sector while the Adani group recently announced a $4 billion investment in the renewable energy sector along with US firm SunEdison, a leading player in photovoltaic equipment.
According to ratings agency ICRA, capacity addition in wind energy is likely to increase 10% to 2,200-2,300 mw during the current financial year.
Inox Wind also plans to expand operations and is in the process of setting up an integrated wind turbine manufacturing facility in Madhya Pradesh at an investment of about Rs 250 crore, director of Inox Wind added.
The company will manufacture 800 mw of nacelles and hubs, 800 mw of blades and 600 mw of towers at the new facility which is likely to be commissioned in phases over the next year. Earlier, it was awarded two wind-farm project contracts of 54 mw and 118 mw in Gujarat and Rajasthan by Tata Power Renewable Energy, a wholly-owned subsidiary of Tata Power.
Industry executives told ET that Inox Wind is likely to come up with an initial public offer (IPO) in March-April. The company plans to raise up to Rs 700 crore as primary component and an offer for sale of up to two crore shares held by Gujarat FluorochemicalsBSE -3.34 % is on the cards, said an executive, who did not wish to be identified.
The total issue size will be decided after the valuation, the executive said, adding that the company is in the process of holding road shows for the IPO in Hong Kong, Dubai and London.