Categories: Stock Markets

Inox Green Energy Services Limited IPO – Price, Lot size, Open date, GMP & Review

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. 

  1. IPO Size

The size of the IPO and different categories of the issue are,

CategoryDetails
IPO Opening Date11th November 2022
IPO Closing Date15th November 2022
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRs.10 per share
IPO Price BandRs.61 – Rs.65 per share
IPO SizeRs.740 crores (11,38,46,154 shares)
Offer For SaleRs.370 crores (5,69,23,077 shares)
Fresh IssueRs.370 crores (5,69,23,077 shares)
  1. IPO Dates

The important dates for the Inox Green Energy Services Limited IPO are highlighted below.

EventDate
Price Band Allotment7th November 2022
Anchor Investors Allotment10th November 2022
Opening date11th November 2022
Closing Date15th November 2022
Allotment date18th November 2022
Refund Date21st November 2022
Share Credit Date22nd November 2022
Listing Date23rd November 2022
  1. 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. 

CategoryDetails
Minimum investment1 lot
Shares in each lot230 shares
Minimum amount of investment per lotRs. 14,030
Maximum permissible investment in Lots 13 lots
Maximum shares for investment2990 shares
Maximum amount of investment permissible Rs. 194,350
  1. IPO Reservation

The categories of eligible investors and their share in the IPO are 

Category of InvestorReservation of the IPO applicableAvailable shares in each categoryAmount of investment from each category (Rs. in crores)
QIB (Qualified Institutional Buyers)75%8,53,84,616555
NII (Non-Institutional Bidders)15%1,70,76,923111
RII (Retail Individual Investors)10%1,13,84,61574

Inox Green Energy Services Limited IPO Objectives

The objectives of the Inox Green Energy Services Limited IPO are mentioned below.

  1. 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.
  2. The proceeds will also be used for the redemption of NCDs (Non-Convertible Debentures) in full.
  3. Other objectives include meeting general corporate purposes.
  4. 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 EPSDiluted EPSRONW
20222121172-93-4.47-4.47-0.61%
20212693172-153-10.38-10.38-64.54%
20202340165-52-6.55-6.551.74%

Strengths of the company

Some of the key strengths of the company are highlighted below. 

  1. Reliable cash flow source on the back of the O&M contracts with its customers
  2. Strong and diverse portfolio.
  3. 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.
  4. Strong backing of its parent company.
  5. Well-established supply chain that supports its growth.
  6. 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.

  1. High dependency on technological advancements and any technical disruptions and failures will adversely affect the business of the company.
  2. Inox Green Energy is entirely dependent on its promoter IWL for its business.
  3. The company has reported huge losses in the past years and could incur future losses as well.
  4. The business of the company and the demand for its services are primarily derived from the demand for electricity.
  5. The industry that the company belongs to is highly competitive and can hinder its growth trajectory.
  6. 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

1. What is the parent company of Inox Green Energy Services Limited?

The parent company of Inox Green Energy Services Limited is Inox Wind Limited.

2. What is the price band for Inox Green Energy Services Limited IPO?

The price band for Inox Green Energy Services Limited IPO is Rs. 61 to Rs. 65

3. What are the eligible investor categories of Inox Green Energy Services Limited IPO ?

The eligible investor categories for Inox Green Energy Services Limited are QIB 75%, NII 15%, and RII 10%.

4. Is the IPO in the nature of a fresh issue?

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.

5. What are the objects of the Inox Green Energy Services Limited IPO?

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.

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Marisha Bhatt

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