Inox Green Energy Services on Wednesday made a poor market debut, as the scrip got listed at Rs 60.50 on BSE, a 6.92 per cent discount to its issue price of Rs 65. At this price, it commanded a market capitalisation of Rs 1,766.23 crore.
On NSE, the scrip debuted at Rs 60, down 7.69 per cent.
Inox Green Energy commanded a grey market premium of Rs 8-10 during the bidding process, but it traded flat just ahead of listing.
Analysts were a bit cautious about the asking valuations and the company's order book, as most of its contract were from its parent, Inox Wind. They were, however, optimistic over the company's prospects, considering the consistent track record, strong parentage and government initiatives to push renewable sector.
The IPO by the provider of long-term O&M services for wind farm projects, got 1.55 times subscription, led by retail (4.7 times) and qualified institutional buyers (1.05 times). The quota reserved for non-institutional investors went undersubscribed at 47 per cent.
Brokerages such as Arihant Capital Markets, Ventura Securities, Hem Securities and KR Choksey Shares & Securities had ‘subscribe’ ratings on the issue.
There is no listed peer for Inox Green Energy. Among global players are Siemens Gamesa's (EV/Ebitda multiple of 35.2 times) and Vestas Wind (18.7 times EV/Ebitda for 2021).
Favourable national policy support, a strong and diverse portfolio, backing by parent company Inox Wind, visibility for future growth and long-term O&M contracts are, meanwhile, seen as key positives for Inox Green Energy.
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