SEBI paused Clean Energy IPO over ongoing investigation into INOXGFL group entities, say sources

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The Securities and Exchange Board of India’s (SEBI's) decision to keep Inox Clean Energy’s proposed Rs 10,000-crore initial public offering (IPO) in abeyance was on account of ongoing investigations involving parent INOXGFL group entities, sources told Moneycontrol.

SEBI’s update on October 1 did not specify the reasons for the move, but sources said scrutiny around transactions through which the listed Inox Green Energy Services divested its shareholding in Inox Clean Energy and three subsidiaries drove the regulator’s action.

SEBI can keep observations in abeyance in specified circumstances involving investigations or inquiries into issuers, promoters, directors or group companies.

The proposed IPO comprises a Rs 8,000 crore fresh issue and a Rs 2,000 crore offer for sale by promoter Devansh Jain. Inox Clean Energy proposes to use Rs 6,000 crore of the fresh proceeds to repay debt.

Inox Clean Energy is promoted by the Vivek Jain-led INOXGFL Group, with his son, Devansh, serving as executive director. INOXGFL is separate from the similarly named INOX Group, which controls Inox Air Products and listed cryogenic-equipment manufacturer Inox India.

INOXGFL Group spans fluorochemicals, fluoropolymers, battery materials, wind and solar equipment manufacturing and renewable power generation.

Emails sent to Inox Clean Energy and SEBI had not elicited a response at the time of publication.

DRHP disclosures

The DRHP, dated September 29, discloses that SEBI sought information from Inox Green Energy Services in December on the difference between the Rs 290 crore consideration approved by its board and shareholders for selling Inox Clean Energy and the Rs 90 crore reflected as received in its FY25 standalone accounts.

Inox Clean Energy was formerly a wholly owned subsidiary of Inox Green Energy Services, which transferred its entire shareholding to IGREL Renewables on November 29, 2024. Following subsequent transfers to Jain family members, the holding is now principally with Devansh, jointly with Avarna Jain, according to the draft prospectus.

Inox Green told SEBI that the Rs 290 crore represented enterprise value, comprising approximately Rs 200 crore towards repayment of Inox Clean Energy’s Power Finance Corporation loan and Rs 90 crore in equity consideration. The transaction was authorised and the required stock exchange disclosures was made, it said.

SEBI also questioned the rationale behind divesting Inox Neo Energies, Flurry Wind Energy and Flutter Wind Energy to Inox Clean Energy at face value, particularly since Inox Neo subsequently raised around Rs 292 crore by issuing shares at Rs 265 apiece.

Inox Green said the subsidiaries had no operations or revenue-generating assets at the time of sale and the consideration reflected their book value. The divestments enabled it to focus on its core operations and maintenance business, it said.

SEBI sought further clarifications in February and March 2026 concerning two valuation reports dated October 20, 2023, issued by the same valuer, which showed materially different valuations of Inox Clean Energy.

The regulator asked which report was considered by the audit committee and board and shared with shareholders and auditors.

Inox Green attributed the difference to an "inadvertent omission" of the debt adjustment in the initial report. It said the corrected report was used for approvals and audit and sharing the earlier version with the proxy adviser was inadvertent. Its last disclosed response was dated April 8, 2026.

The DRHP SAYS no show-cause notice, order or adjudication proceedings were initiated by SEBI against Inox Green as of the filing date and added that a favourable conclusion to the inquiry could not be assured.

Other SEBI issues

Separately, Inox Wind received SEBI summons over financial disclosures and business transactions, the prospectus says. Devansh Jain and independent director Bindu Saxena attended personal hearings. Inox Wind also received queries relating to investigations into suspected insider trading by certain entities in its shares.