Inox Green Energy Services IPO subscribed 0.91 times on day 2

• The IPO saw the portion for retail investors subscribed 3.12 times.
• Inox Green Energy Services plans to raise ₹740 crore through a fresh issue of shares worth ₹370 crore and an offer for sale up to ₹370 crore.
• The price band for the issue is set at ₹61-65 a share.
• The grey market premium (GMP) for the company’s shares are at ₹5 per share.

The initial public offering of wind power operation and maintenance service provider Inox Green Energy Services has been subscribed 0.91 times on the second day of the IPO subscription process. The IPO opened for subscription on November 11 and will close on November 15.

The IPO saw the portion for retail investors subscribed 3.12 times. Meanwhile, the portion reserved for qualified institutional investors has been subscribed 0.51 times.

Inox Green Energy Services plans to raise ₹740 crore through a fresh issue of shares worth ₹370 crore and an offer for sale up to ₹370 crore. The net proceeds from the fresh issue will be utilised towards repaying debts and for general corporate purposes.

The company is in the business of providing long-term operation and maintenance (O&M) services for wind farm projects, specifically the provision of O&M services for wind turbine generators (WTGs) and the common infrastructure facilities on the wind farm.

Inox Green Energy Services is a subsidiary of Inox Wind, which is listed on exchanges.

The grey market premium (GMP) for the company’s shares are at ₹5 per share. GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges.

As of June 30, 2022, its O&M services portfolio consisted of an aggregate 2,792 megawatts of wind farm capacity and 1,396 WTGs. The company provides O&M services to all customers who purchase WTGs from its parent company during the relevant warranty period as part of a one-stop shop/turnkey solution.

It is currently entirely dependent on its parent Inox Wind for business.

In its red herring prospectus (RHP) filed with the The Securities and Exchange Board of India (SEBI), Inox Green Energy Services said that if the parent company were to choose another service provider for operation and maintenance services of their wind turbine generators, its business, financial condition and prospects may be adversely affected.

Inox Green Energy Services registered a net loss of ₹4.9 crore on revenue of ₹172 crore in FY22. A year earlier its net loss was ₹27.7 crore.


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