INOX Wind

I would ask investors to go through prospectus and answer following issues:

  1. What is cash investment by Inox Group in the company? While the management is good reputation, it worth noting that during FY12 and FY13 substantial sale happen to Inox group. The profit generated from this group sale has created profit balance which was utilised by the company to issue bonus shares and reduce its cash cost substantially which was later divested through offer for sale at substantially high price. While nothing wrong in that, personally, I did not like divestment at very high price. Same was case with Reliance power.
  2. Technology. They have sourced technology from some European company which was in financial problem. One can not have business model which is constrained by technology in this sector.
  3. Why not to investment in Gujarat Flouro which is positive cash flow and diversified company then Inox Power? Any market price change shall indirectly also benefit parent company.

I do not hold any shares in company but did evaluated investment in the company and passed due to above cited reason. Individual investors are advised to take their own decisions after reading all information.