IGREL Renewables eyes fresh ₹300 crore equity fundraise next fiscal

The fundraising would be part of the company's ₹12,000 crore capex strategy to build 2 gigawatts of renewable energy capacity in the next two years. 

He noted that about a quarter of the projected capex would come from equity, while the rest 75% would come from debt.

The 2 GW capacity expected to be installed by 2026-27 would cater to the group's captive requirements, commerce, and industry clients. Power will also be sold on the exchanges. Solar power would make up about half of the capacity, and wind power plants would supply the other half.

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IGREL Renewables raised about ₹300 crore last week through an equity round.

"We have raised ₹300 crore now, which is, in effect, a single-digit dilution. Effectively, we have already got equity in place for about 600 MW...and then the internal accruals are large enough to put in about 200-300 MW every year. We will raise another round next year to raise a similar amount, and that puts us on track to put 2 GW," he said.

Win-win strategy

Describing the platform as a "win-win" strategy for the group, he said that along with providing cheaper and green power to the group companies, the platform would also ensure the group companies are compliant with green targets and meet regulatory norms such as the European Union's Carbon Border Adjustment Mechanism (CBAM).

"What this platform does is basically, it is a win-win for the entire group. All our operating companies get power, renewable power to fulfil their power requirements, fixed tariffs for the next 25 years, and no capex and non-core capex on the balance sheet. Most of them (group companies) export globally, so you need to achieve your climate targets, be clean in terms of global targets now."

Apart from wind power equipment manufacturing major Inox Wind Ltd, power generation company Inox Wind Energy Ltd (IWEL) and wind power operation and maintenance (O&M) service provider Inox Green Energy Services, the group is also present in the chemicals business through Gujarat Fluorochemicals Ltd (GFL), which produces fluoropolymers, fluorospecialities and refrigerants, among others. Further, GFL's subsidiary, GFCL EV Products Ltd, manufactures intermediate materials for lithium-ion batteries.

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The INOXGFL Group is in the final stages of merging IWEL into INOX Wind to create a pure-play wind company. INOX Green, the listed O&M arm, will continue separately due to its growth potential and annuity business model. Further, INOX Wind's engineering, procurement and construction (EPC) arm Resco, is expected to be demerged and listed on the exchanges in 2025.

"Typically, power sourced from the grid costs 50-60% higher than what we can source through this platform. At the group level, we're looking at savings of ₹150 to ₹250 crore over the next two to three years, based on current demand," Jain said in an 18 September statement on the latest fundraising.

He also said that to maintain financial efficiency, the promoters have ensured that none of the listed companies carry non-core debt.

"We are building this entity privately, where all the debt will come in at the promoter level. This structure ensures that operating companies receive power at a fixed price, creating value across the ecosystem," he said.

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Speaking to Mint, he said the company is looking at capturing the entire ecosystem in the renewable energy space, ranging from project development and manufacturing to power generation, along with captive consumption.