Introduction
We are heading towards the end of 2022, and this year has seen a lot of major IPOs along with IPOs from the SME sector. The latest company to enter the stock markets with an IPO is Inox Green Energy Services Limited.
The Inox Green Energy Services Ltd IPO was open from 11th to 15th November 2022. Allotment of the IPO is expected to be out today, November 18. The GMP (grey market premium) of this issue is Rs. 2 and the issue was subscribed 1.55 times as of the last day of subscription.
Some of the important details of this IPO and a detailed review are mentioned hereunder.
Read More: Suzlon energy bags wind power contract from Adani Green
IPO Details
The various details of the Inox Green Energy Services Limited IPO are as under.
- IPO Size
The size of the IPO and different categories of the issue are,
| Category | Details |
| IPO Opening Date | 11th November 2022 |
| IPO Closing Date | 15th November 2022 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Rs.10 per share |
| IPO Price Band | Rs.61 – Rs.65 per share |
| IPO Size | Rs.740 crores (11,38,46,154 shares) |
| Offer For Sale | Rs.370 crores (5,69,23,077 shares) |
| Fresh Issue | Rs.370 crores (5,69,23,077 shares) |
- IPO Dates
The important dates for the Inox Green Energy Services Limited IPO are highlighted below.
| Event | Date |
| Price Band Allotment | 7th November 2022 |
| Anchor Investors Allotment | 10th November 2022 |
| Opening date | 11th November 2022 |
| Closing Date | 15th November 2022 |
| Allotment date | 18th November 2022 |
| Refund Date | 21st November 2022 |
| Share Credit Date | 22nd November 2022 |
| Listing Date | 23rd November 2022 |
- IPO Lot Sizes
The subscription for shares of Inox Green Energy Services Limited IPO can be done in lots by different investor categories. The details of the lot sizes for this IPO are mentioned below.
| Category | Details |
| Minimum investment | 1 lot |
| Shares in each lot | 230 shares |
| Minimum amount of investment per lot | Rs. 14,030 |
| Maximum permissible investment in Lots | 13 lots |
| Maximum shares for investment | 2990 shares |
| Maximum amount of investment permissible | Rs. 194,350 |
- IPO Reservation
The categories of eligible investors and their share in the IPO are
| Category of Investor | Reservation of the IPO applicable | Available shares in each category | Amount of investment from each category (Rs. in crores) |
| QIB (Qualified Institutional Buyers) | 75% | 8,53,84,616 | 555 |
| NII (Non-Institutional Bidders) | 15% | 1,70,76,923 | 111 |
| RII (Retail Individual Investors) | 10% | 1,13,84,615 | 74 |
Inox Green Energy Services Limited IPO Objectives
The objectives of the Inox Green Energy Services Limited IPO are mentioned below.
- The key objective of the IPO is for repayment or prepayment in part or in full towards certain borrowings that have been already availed by the company.
- The proceeds will also be used for the redemption of NCDs (Non-Convertible Debentures) in full.
- Other objectives include meeting general corporate purposes.
- This IPO is partly in the nature of an Offer for Sale. Therefore, the proceeds from the same will not be received by the company after the deduction of offer expenses and taxes thereon.
About Inox Green Energy Services Limited IPO
Inox Green Energy Services Limited belongs to the green energy Sector and was incorporated in 2012. The company is a leading name in providing wind operation and maintenance (O&M) services in the country for wind farm projects, especially for Wind Turbine Generators (WTGs) as well as towards common infrastructure facilities on the wind farms supporting the evacuation of power from the WTGs.
The company is primarily present in Gujarat, Rajasthan, Madhya Pradesh, Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu, and Kerala. The company provides long-term O&M contracts (ranging between 5 years to 20 years) to all the WTG purchases which are made through IWL (Inox Wind Limited). As of June 2022, the company has a 2792 MW of wind farm capacity and 1396 wind turbine generators.
Financials of the company
The core financials of the company are tabled below.
| Year | Total Assets (Rs. In crores) | Operating Revenue (Rs. In crores) | Profit after tax (Rs. In crores) | Basic EPS | Diluted EPS | RONW |
| 2022 | 2121 | 172 | -93 | -4.47 | -4.47 | -0.61% |
| 2021 | 2693 | 172 | -153 | -10.38 | -10.38 | -64.54% |
| 2020 | 2340 | 165 | -52 | -6.55 | -6.55 | 1.74% |
Strengths of the company
Some of the key strengths of the company are highlighted below.
- Reliable cash flow source on the back of the O&M contracts with its customers
- Strong and diverse portfolio.
- The company belongs to the green sector which is up and coming and has an established track record along with a favorable national policy that supports its future and visibility.
- Strong backing of its parent company.
- Well-established supply chain that supports its growth.
- Strong and experienced management team that understands the business and the growth opportunities that it brings.
Risks of investment
The different risks that are faced by the company are highlighted below.
- High dependency on technological advancements and any technical disruptions and failures will adversely affect the business of the company.
- Inox Green Energy is entirely dependent on its promoter IWL for its business.
- The company has reported huge losses in the past years and could incur future losses as well.
- The business of the company and the demand for its services are primarily derived from the demand for electricity.
- The industry that the company belongs to is highly competitive and can hinder its growth trajectory.
- The company is highly capital intensive and any negative credit rating will affect the ability of the company to raise future funds.
What is the Grey Market Premium (GMP) on Inox Green Energy Services Limited IPO?
As of November 18, 2022, the grey market premium for the shares of Inox Green Energy Services Limited is Rs. 2 as per market observers.
Should you apply for Inox Green Energy Services Limited IPO?
The company has not reported strong financials for the past many years and the business as well as the survival of the company is hugely dependent on its parent company. These factors pose a red flag for investors. However, the company has recently sold off its entire stake in three SPVs (Special Purpose Vehicles) Wind One Renergy Ltd, Wind Three Renergy Ltd, and Wind Five Renergy Ltd to Adani Green Energy Limited which is a substantial part of the Adani Group. The name Adani Group generates partial interest in the IPO, as well as the potential of the green energy sector in the future, which can generate a positive buzz for the company. The company can therefore be considered as part of the investment portfolio only with the long-term view. Investors aiming for substantial listing gains may give it a pass.
How to apply for Inox Green Energy Services Limited IPO?
Investors can invest in this IPO through the Fisdom app.
FAQs
The parent company of Inox Green Energy Services Limited is Inox Wind Limited.
The price band for Inox Green Energy Services Limited IPO is Rs. 61 to Rs. 65
The eligible investor categories for Inox Green Energy Services Limited are QIB 75%, NII 15%, and RII 10%.
The Inox Green Energy Services Limited IPO is partly in the nature of a fresh issue (50% of the IPO Size) and partly an Offer for Sale (balance 50% of the IPO Size.
The objects of the Inox Green Energy Services Limited IPO include redemption of secured NCDs in full and repayment or prepayment of the existing borrowings of the company.
