INOX Green Energy IPO GMP: IPO (Initial Public Offering) of Inox Green Energy Services opens to public subscription on Friday and will end on November 15. Initially, 56,923,077 shares of the Rs 740-crore company were issued, followed by 56,923,077 shares offered for sale, each worth Rs 370 crore.
There was a 0.04 times subscription for the Inox Green Energy IPO. Retail subscriptions were 0.20 times, QIB subscriptions were 0.00 times, and NII subscriptions were 0.00 times.
INOX Green Energy IPO GMP Price
In its IPO, Inox Green Energy has set a price band of Rs 60-65 per share. At the upper end of this band, EV/EBITDA is expected to be valued at 32.7 times and EV/sales at 15.6 times respectively.
INOX Green Energy IPO GMP Lot Size
A retail bidder can buy a maximum of 13 lots or 2,990 shares in the Inox Energy IPO, which is priced at Rs 14,950 per lot at the upper end of the price band.
INOX Green Energy IPO GMP Size and Quota
A total of 113,846,154 shares worth Rs 10 each are being issued in the Inox Green Energy IPO. 56,923,077 shares of Rs 10 each are being issued in a fresh issue (a total of Rs 370 crore) as well as 56,923,077 shares of Rs 10 being offered for sale (a total of Rs 370 crore).
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INOX Green Energy IPO GMP
It is expected that Inox Energy’s unlisted shares will be listed on the gray market for Rs 75 per share on Friday, a premium price of Rs 10 over the upper price band limit of Rs 65. On Thursday, November 23, 2022, the company’s shares will be listed on the BSE and NSE.
Observing that Inox Green has no comparable peers, Choice Broking offered a ‘Subscribe with Caution’ rating on the issue. Considering the company’s return ratios, the EV/sales multiple seems high.
On the basis of FY24E topline, demand for electric vehicles/sales comes out to be 8.9 times. Wind energy macros have improved after the regime change and pandemic-related restrictions.
Inox Green would benefit from an expansion of the market for O&M services over the next five years since there will be massive capacity addition targets. Therefore, we assign the issue a rating of “Subscribe with Caution.”
According to Arihant Capital, the business will continue to grow due to a synergistic relationship with Inox Wind, long-term maintenance contracts, and a strong supply chain. We recommend ‘Subscribe for Long Term’ on this issue since Inox Green is expected to clear its debt after the IPO, lowering interest costs and improving profitability.