2024-09-22 13:41:22 :
New Delhi
: IGREL Renewables, the renewable energy platform of the INOXGFL Group, is considering raising around 10 billion in new equity. ₹The group’s revenue will touch Rs 300 crore by 2025-26, Devansh Jain, executive director of the group, said in an interview.
This financing will become the company’s ₹12,000 crore capital expenditure strategy to build 2 GW of renewable energy capacity in the next two years.
He noted that about a quarter of capital expenditure is expected to come from equity, with the remaining 75% coming from debt.
It is expected that 2 GW of generation capacity will be installed by 2026-27 to cater to the group’s captive needs, commercial and industrial customers. The electricity will also be sold on the exchange. Solar power will account for about half of the generation capacity, with wind farms supplying the other half.
IGREL Renewables proposes ₹300 crore through equity financing last week.
“We have proposed ₹“We are looking at Rs 3,000 crore, which is actually a single-digit dilution. We have actually got equity of about 600 MW… and then the internal accruals are big enough to put in about 200-300 MW every year. We will raise another round next year of a similar amount, which will take us to 2 GW hopefully,” he said.
Win-win strategy
He described the platform as a “win-win” strategy for the group, saying that in addition to providing cheaper green electricity to group companies, the platform will ensure that group companies adhere to green targets and meet regulatory norms such as the EU Carbon Border Adjustment Mechanism (CBAM).
“What this platform does is basically a win-win for the entire group. All our operating companies get electricity, renewable energy for their electricity needs, fixed electricity prices for the next 25 years, no capex and non-core capex on the balance sheet. Most of them (group companies) export globally, so you need to meet your climate targets and be transparent now in terms of global targets.”
Besides wind power equipment manufacturing giant Inox Wind Ltd, power generation company Inox Wind Energy Ltd (IWEL) and wind power operations and maintenance (O&M) services provider Inox Green Energy Services, the group is also in the chemicals business through Gujarat Fluorochemicals Ltd (GFL), which makes fluoropolymers, fluoro-specialty products and refrigerants, among others. In addition, GFL’s subsidiary GFCL EV Products Ltd also produces intermediate materials for lithium-ion batteries.
INOXGFL Group is in the final stages of merging IWEL into INOX Wind to create a pure-play wind company. The listed operations and maintenance arm INOX Green will continue to operate independently due to its growth potential and annuity business model. In addition, INOX Wind’s engineering, procurement and construction (EPC) arm Resco is expected to be spun off and listed on the exchanges in 2025.
“Usually, the cost of electricity procured from the grid is 50-60% higher than what we procure through this platform. At the group level, we hope to save ₹150 to ₹250 crore, based on current requirements,” Jain said in a September 18 statement on the latest funding.
He also said that in order to maintain financial efficiency, the promoters ensure that none of the listed companies have non-core debt.
“We are setting up this entity privately and all debt will be at the promoter level. This structure ensures that the operating company gets power at a fixed price, thereby creating value for the entire ecosystem,” he said.
Working with MintHe said the company is looking at capturing the entire ecosystem in the renewable energy sector, from project development and manufacturing to power generation and captive consumption.
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