Inox Green Energy IPO: Retail investors broke on day one, know A to Z details

New Delhi. The initial public offering of Inox Green Energy Services, a subsidiary of wind turbine manufacturer Inox Wind, has received a good response on the first day. Bids have been received for 3.05 crore shares on the very first day as against its offer of 6.67 crore shares.

On the first day, 46 per cent of the offer shares have been filled. Retail investors are at the forefront of the response to the IPO. Retail investors have got 1.03 times subscription of allotted quota. You can apply for this IPO till 15th November. Its lot site is of 230 shares. The price band has been kept from ₹ 61 to ₹ 65 per share. Before the IPO, the promoters’ holding is 93.84%, and after the IPO it will be 56.04%.

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The company has reduced the size of the offer
In fact, from day one, all types of investors participated in the offer. The portion set aside for high net worth individuals and qualified institutional buyers has received subscriptions of 5 per cent and 47 per cent, respectively. The wind power operation and maintenance service provider on November 10 reduced its offer size from 11.38 crore shares to 6.67 crore shares after raising Rs 333 crore from anchor book.

The company will get Rs 740 crore from the public issue. The offer includes issue of fresh shares worth Rs 370 crore and offer for sale of Rs 370 crore by promoter Inox Wind. The proceeds from the new IPO will be used only to repay the loan. Its total borrowings as of June 2022 were over Rs 900 crore.

What is brokerage
ICICI Direct said, “Depending on its parent company for most of the operation and maintenance contracts may result in slow growth in future order flows. The total loan on the books was around Rs 900 crore, though the management expects to become debt free in the coming period (through IPO and SPV sale). We see uncertainty on this for the time being and future profitability.”

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Abhishek Jain of Arihant Capital said on this IPO, “The company has 7 per cent market share in O&M and through acquisitions, the company has opportunities for in-organic growth. O&M contracts are for a longer period with pricing norms. Due to this, there is no possibility of problems with the company’s earnings in the long term. We recommend subscribing it for a longer period.”

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