IPO Analysis

Inox Green Energy IPO: Should you apply?

India's major wind power operation and maintenance service provider has come out with an IPO. Read our analysis.

Inox Green Energy IPO: Information analysis

About the company

What does Inox Green Energy do: Inox Green Energy is engaged in the business of providing long-term operation and maintenance services to wind farms. The company's parent, Inox Wind manufactures wind turbine generators and Inox Green Energy's services are paired up with the product when selling to customers. This means that when Inox Wind sells turbines, Inox Green Energy's services are offered along with it, typically for set periods. The fee is fixed with 5 per cent escalation every year.


  • Strong portfolio: As of June 2022, the company has an aggregate of 2,792 MW of wind projects with an average remaining project life of more than 20 years. Since operation and maintenance (O&M) is essential for wind farms, the company has never faced any cancellation of contracts from its customers too.
  • Synergy with parent company: The company gets its clients through its parent company, Inox Wind. Due to this relationship, the availability of parts and tools is made extremely easy. Inox Wind also has a rich order book.


  • Over-reliance on Inox Wind: As stated above, Inox Green Energy provides exclusive services to clients who purchase turbines from Inox Wind. But at the moment, it derives all of its revenue from such agreements only. If there is any issue with the parent organisation or fall in the order book, itwill have an adverse impact on Inox Green Energy. Not to mention several litigations that are against Inox Wind.
  • Poor financials: Despite being a relatively asset-light business, Inox Green has not posted profits in the last two years due to high-interest costs. While repayment post-IPO can help reduce finance costs, the track record so far has proven otherwise.

Risk score (The lower the score, the riskier the stock)

Disclaimer: This is not a stock recommendation. Do your due diligence before investing.

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