Inox green energy

The initial public offering of Inox Green Energy Services, the subsidiary of wind turbine manufacturer Inox Wind, has received bids for 3.05 crore shares against an offer size of 6.67 crore shares, subscribing 46 percent on debut today. Retail investors are at the forefront in terms of response to the IPO, buying 1.03 times the allotted quota. In fact, all the investors participated in the offer from the first day itself. The portions set aside for high networth individuals and qualified institutional buyers were subscribed 5 percent and 47 percent, respectively. The wind power operation and maintenance service provider has reduced its offer size to 6.67 crore shares, from 11.38 crore shares after it mobilised Rs 333 crore from anchor book on November 10. The public issue will fetch the company Rs 740 crore. The offer comprises a fresh issuance of shares worth Rs 370 crore, and an offer-for-sale of Rs 370 crore by promoter Inox Wind. Also read: Inox Green Energy Services IPO opens: 10 key things to know before subscribing The fresh issue proceeds will be utilised only for repaying debts. Its total borrowing was more than Rs 900 crore as of June 2022. Inox Green Energy Services provides exclusive operation and maintenance services for all wind turbine generators (WTG) sold by promoter entity Inox Wind through the entry of long-term operation and maintenance contracts between the WTG purchaser and Inox Wind for terms, which typically range between five and 20 years. As of Ju...

Shares of Inox Wind Energy ended with gains of over 13 percent on Tuesday after the board approved its merger with Inox Wind, subject to approval of shareholders and creditors of both entities. 158 shares of Inox Wind with a face value of Rs 10 each will be issued to shareholders of Inox Wind Energy for every share held by them.

As per market observers, Inox Green Energy shares are commanding a premium (GMP) of ₹6 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Wednesday, November 23, 2022. Inox green has 7% market share in O&M portfolios and having opportunity in inorganic growth through acquisitions of inactive players. Post IPO, Inox green is expected to clear the debt which will reduce the interest cost substantially and improve bottom levels. We are recommending “Subscribe for Long Term" for this issue," said ArihantCapital. Inox Green Energy Services is engaged in the business of providing long-term Operation and Maintenance (O&M) services for wind farm projects, specifically for Wind Turbine Generators (WTGs) and common infrastructure facilities on wind farms, which support the evacuation of power from such WTGs. "The macros of the wind energy segment are improving after the regime change and pandemic led restrictions. With massive capacity addition target over the next five years, 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.

Inox Green Energy Services dependent on parent company for business Inox Green Energy Services said in its DRHP that if its parent –the listed Inox Wind – were to choose another service provider for operation and maintenance services of its wind turbine generators, its business, financial condition and prospects may be adversely affected. Analysts see uncertainty in future profitability “Dependence on the parent company for most O&M contracts may lead to muted growth in future order inflows. Total debt on the books was at ~| 900 crore; though the management expects to become net debt free in the coming period (through IPO proceeds and selling a SPV), we see uncertainty on this and future profitability. We assign an UNRATED rating to the IPO,” said a report by ICICIdirect Research.