Inox Green Energy Listing: Inox Green Energy Services made a weak debut in the domestic market today. Its shares were issued to IPO investors at a price of Rs 65 but were listed in the domestic equity market at a discount of about 7 per cent. Its trading started at Rs 60 on NSE and Rs 60.50 on BSE (Inox Green Energy Services Share Price). Its IPO also did not get much response from investors but was fully subscribed. Its issue of Rs 740 crore was subscribed 1.55 times. The maximum retail investors' quota was subscribed about 4.70 times.
Details about Inox Green Energy
Inox Green provides long term O&M services for wind farm projects. Inox Green provides O&M services for Inox Wind, which sells Wind Turbine Generator Systems. The contract for these ranges from five years to 20 years. It has presence in Gujarat, Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu. It is a subsidiary of Inox Wind which is already listed in the domestic equity market.
What is the trend of experts regarding the company?
New shares worth Rs 370 crore have been issued under Inox Green Energy's Rs 740 crore IPO. The money raised through the new shares will be used by the company to repay debt, redemption of NCDs and for general corporate purposes. Chirag Shah, analyst at ICICI Direct, said ahead of the IPO that it is dependent on its parent company for most of its O&M contracts, due to which its growth looks sluggish.
Although Reliance Securities analyst Arafat Syed believes that the company has made losses in the last two financial years, but the government is emphasizing on green energy, which will benefit the company. Also, its portfolio is strong and diversified, so O&M contracts will be supported in the long term.
Disclosure: The opinions and advice expressed here are those of the expert/brokerage firm. StockPro assumes no responsibility in this regard. Before making any investment decision, StockPro advises users to seek the advice of certified experts.
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