Inox Green Energy Services IPO
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 June 30, 2022, its operation and maintenance services portfolio consisted of an aggregate 2,792 MW of wind farm capacity and 1,396 wind turbine generators.
"Dependence on the parent company for most operations and maintenance contracts may lead to muted growth in future order inflows. Total debt on the books was at around Rs 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," ICICI Direct said.
Also read: Inox Green Energy IPO | Should you subscribe to the issue?
The price band for the public issue, which closes on November 15, is Rs 61-65 per share.
Inox Green Energy Services posted loss of Rs 4.7 crore for the year ended March FY22, narrowing from Rs 32.34 crore in previous year. Revenue from operations during the same period largely remained flat at Rs 172.2 crore compared to previous financial year.
Loss from continuing operations for the quarter ended June FY23 stood at Rs 11.58 crore on revenue of Rs 61.78 crore.
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