• This is the 3rd RI from the company since January 2023.
• Last RI was in the month of July 2024. It marks hat trick with current RI.
• The company posted inconsistency in its top and bottom lines for the reported periods.
• The RI appears to have been aggressively priced, considering its recent financial data.
• There is no harm in skipping this pricey and dicey RI.
ABOUT COMPANY:
Indowind Energy Ltd. (IEL) is a renewable energy company specializing in wind power generation and distribution with over 29 years of expertise in owning, operating and maintaining windmills. Since its inception in 1995, the company has been committed to advancing wind energy as a sustainable power source, focusing on high-potential wind regions in India, particularly Tamil Nadu and Karnataka.
Its journey began with the installation of first windmill in Tamil Nadu, with a capacity of 225 KW during the year 1995. Over the years, it has strategically expanded portfolio through the acquisition and operation of brownfield windmill projects from third parties, as well as the development of greenfield projects. The company has 129 windmills located across Tamil Nadu and Karnataka, with a total installed capacity of 53.995 MW for wind energy-based renewable power generation, of which 30.900 MW and 23.095 MW are located in Tamil Nadu and Karnataka respectively.
Further it had acquired 100% of the Equity share capital of Ind Eco Ventures Limited (“Our Subsidiary”) in Financial Year 2023-24, which is an unlisted public company engaged in the business of generation of electricity, thereby increasing its capacity of windmills by 3.675 MW in the state of Tamil Nadu. A joint company petition for sanctioning Scheme of Amalgamation between Ind Eco Ventures Limited (“Transferor Company”) and Indowind Energy Limited (“Transferee Company”) was presented on October 17, 2024 and admitted vide order dated December 11, 2024 by Hon’ble National Company Law Tribunal (NCLT) Division Bench Court II Chennai under section 230 - 232 of the Companies Act 2013. The next hearing before Hon’ble Tribunal is on December 03, 2025.
The power generated by its windmills are sold under the group captive scheme, as well as through third-party sales to corporates and the State Electricity Board - DISCOM, in accordance with Power Purchase Agreements ("PPAs"). As of the date of this offer document, the company had 65 employees on its payroll.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 32200434 equity shares of Rs. 10 each at a fixed price of Rs. 15.35 per share to mobilize Rs. 49.43 cr. The RI opens for subscription on December 01, 2025, and will close on December 09, 2025. The company is offering RI in the ratio of 1 for 4 to its eligible stakeholders as of the record date of November 19, 2025. The company is asking for full money on application for the number of shares applied. Post allotment, RI shares will be listed on BSE and NSE. The company is spending Rs. 4.75 cr. for this RI process, and from the net proceeds, it will utilize Rs. 21.50 cr. for setting up of 4 MW solar power plant in Karnataka, Rs. 11.00 cr. for repayment/prepayment of loans from Loyal Credit and Indus Finance, and Rs. 12.18 cr. for general corporate purposes.
The RI is solely lead managed by Mark Corporate Advisors Pvt. Ltd., and Bigshare Services Pvt. Ltd. is the registrar to the issue. Surprisingly, this RI is underwritten to the tune of Rs. 20.00 cr. by Mark Corporate Advisors Pvt. Ltd.
Post-RI, company’s current paid-up equity capital of Rs. 128.80 cr. will stand enhanced to Rs. 161.00 cr. Based on the RI pricing, the company is looking for a market cap of Rs. 247.14 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total income / net profit, of Rs. 40.95 cr. / Rs. 7.27 cr. (FY24), Rs. 35.81 cr. / Rs. 1.27 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 2.58 cr. on a total income of Rs. 11.55 cr. Its NAV stood at Rs. 21.73 as of June 30, 2025.
DIVIDEND POLICY:
The company has not given any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 532894 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 16.26 on November 18, 2025, and opened on an ex-right basis at Rs. 15.52 on November 19, 2025. Since then, it has marked a high/low of Rs. 18.70 / Rs. 15.00. The scrip last closed at Rs. 18.12 as of November 28, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 27.69 / Rs. 14.10.
The promoters’ holding has been constant at 47.16% for the quarter ended with September 30, 2025. The counter is trading above the RI price, with well managed counter by the vested interest quarters.
Review By Dilip Davda on November 30, 2025
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
