Inox Green Energy IPO subscribed 56% on Day 2 so far

New Delhi: The Rs 740-crore initial public offering (IPO) of Inox Green Energy Services continued to receive mild response from the investor during the second day of the bidding process. The issue was subscribed 46% on day one

The company is selling its shares in the range of Rs 61-65 apiece between November 11-15, with a lot size of 230 equity shares. The issue comprises fresh equity shares worth Rs 340 and offer-for-sale (OFS) of the same amount.

According to BSE data, investors made bids for 3,71,97,670 equity shares or 56% compared to the 6,67,21,310 equity shares offered for the subscription by 11.10 am Monday, November 14.

The quota for retail bidders was subscribed 1.54 times, whereas the allocation for non-institutional investors fetched just 7% bids. But the portion for qualified institutional bidders was booked at 47%.

Incorporated in 2012, Inox Green Energy Services is one of the major wind power operation and maintenance (O&M) service providers within India, specifically the provision of O&M services for wind turbine generators.

The company, which is a subsidiary of Inox Wind, has a presence in Gujarat, Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu.

Brokerage firms remain mixed over the issue citing the difficult operations in the segment, muted financial performance and high dependence on the parent company.

The company’s financials are not encouraging as it is currently into losses, said Religare Broking with a neutral rating. "Its revenue grew just by 2% CAGR over FY20-22," it added.

The brokerage cited high dependence on its promoters, Inox Winds and technology failure could disrupt operations as the key risks for the company.

Hensex Securities is also neutral for the issue, whereas Reliance Securities has not rated the issue. However, KR Chokesy and Arihant Capital have a buy tag on the company.

Edelweiss Financial Services, DAM Capital Advisors, Equirus Capital, IDBI Capital Market Services and Systematix Corporate Services are managers to the issue, whereas Link Intime India is appointed as the registrar to the issue.

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