Inox Green Energy Services, a subsidiary of Inox Wind, began its initial public offering (IPO) on Friday, November 11, 2022, and will complete on Tuesday, November 15, 2022. For its maiden share offering, the company has set a price range of 61 to 65 cents per share. The company announced on Thursday that it has raised 333 crores from anchor investors ahead of its first public offering.
According to NSE data, the Inox Green Energy IPO was subscribed 46% on the first day of registration on Friday, with bids for 3.05 crore shares against 6.67 million shares on offer.
The initial public offering (IPO) of Inox Green Energy includes both a new issuance of equity shares with a total value of 370 crores and an offer-for-sale (OFS) of equity stocks with a total value of 370 crores by the company that was founded, Inox Wind. The net proceeds from the new offer will be used to settle debts and for general corporate objectives, according to the company’s plans.
According to market experts, Inox Green Energy shares are currently commanding a premium (GMP) of 6 in the grey market. On Wednesday, November 23, 2022, the company’s shares are planned to be listed on the stock exchanges BSE and NSE.
Inox Green currently holds a 7% market share in O&M portfolios and has the potential for inorganic development through acquisitions of inactive players. Following the IPO, Inox Green is expected to clear the debt, significantly lowering interest costs and improving bottom lines. “We recommend “Subscribe for Long Term” for this issue,” ArihantCapital added.
Inox Green Energy Services is in the business of delivering long-term Operation and Maintenance (O&M) services for wind farm projects, more especially for Wind Turbine Generators (WTGs) and common infrastructure facilities on wind farms, which facilitate the evacuation of power from such WTGs. This is the kind of work that Inox Green Energy Services does.
“After the regime change and pandemic-led constraints, the macros of the wind energy segment are improving.” With substantial capacity additions planned over the next five years, the target market for O&M services will grow, benefiting businesses such as IWESL. As a result, we rate the issue as “Subscribe with Caution,” according to Choice Broking.