Inox Green Energy IPO GMP, Subscription; Should You Buy on Last Day?

The subscription for the initial public offering (IPO) of Inox Green Energy Services, a subsidiary of Inox Wind closes today. The three-day offer issues opened on Friday, November 11. Till the second day, the IPO had received 85 per cent of subscriptions. Ahead of going into the IPO, the company raised Rs 333 crore from anchor investment for the allocation of 5.12 crore shares at Rs 65 a piece. The anchor investors of Inox Green Energy Services include Morgan Stanley Asia (Singapore) Pte, HDFC Mutual Fund (MF), ICICI Prudential MF, Aditya Birla Sun Life MF, Nomura Singapore Ltd, Citigroup Global Markets Mauritius Private Limited, and others.

The company has fixed a price band of Rs 61 o 65 per share for the Rs 740 crore IPO. This comprises of fresh issue of 56,923,077 shares and an offer for sale of 56,923,077 shares, both aggregating up to Rs 370 crore each. Of this, at least 75 per cent is reserved for qualified institutional investors, up to 15 per cent for high-net-worth individuals, and 10 per cent for retail investors. The proceeds from the fresh issue will be used for paying the debts and general purposes of the company.

Retail investors can bid for the Inox Green Energy IPO with a minimum lot size of 230 shares and its multiple thereafter. The IPO is word Rs 14,950 at its upper price band and retail bidders bid for 13 lots or 2,990 shares at maximum.

With a presence in states like Rajasthan Maharashtra, Gujarat, Karnataka, Madhya Pradesh Kerala, Tamil Nadu and Andhra Pradesh, Inox Green offers long-term Operation and Maintenance (O&M) services for wind farm projects including wind turbine generators and common infrastructure facilities on wind farms.

GMP Today

As per market observers, Inox Green Energy shares are commanding a premium (GMP) of Rs 4 in the grey market today.

Should you Invest?

“The macros of the wind energy segment are improving after the regime change and pandemic-led restrictions. With a massive capacity addition target over the next five years, the target market for the O&M services would expand, thereby benefiting players like IWESL. Thus, we assign a “Subscribe with Caution” rating for the issue,” said Choice Broking.

Edelweiss Financial Services, DAM Capital Advisors, Equirus Capital, IDBI Capital Markets and Systematix Corporate Services are the managers to the initial share sale.

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