Inox Green Energy IPO Review – Should you Avoid?
Vadodara based Inox Green Energy IPO would open for subscription on 11th November, 2022. Inox Green Energy Services is one of the major wind power operation and maintenance service providers within India. Should you invest in Inox Green Energy IPO? This article would provide IPO details, Dates, Listing Date and conclusion on whether this is good or bad for investment.
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About Inox Green Energy Limited
Company is incorporated in 2012.
Inox Green Energy Services Ltd is one of the major wind power operation and maintenance service providers within India.
It is a subsidiary of Inox Wind Limited, a listed company and part of the Inox GFL group of companies.
Inox Green Energy IPO Details
|IPO Opening Date||11-Nov-22|
|IPO Closing Date||15-Nov-22|
|Issue Type||Book Built Issue IPO|
|Face Value||Rs 10 per equity share|
|IPO Price band||Rs 61 to Rs 65 per equity share|
|Lot Size||230 Shares|
|Min Order Quantity||230 Shares|
|Listing at||BSE and NSE|
|Total Issue Size||Rs. 740 Crores|
|Fresh issue||Rs. 370 Crores|
|OFS||Rs. 370 Crores|
What are the strengths of Inox Green Energy Limited?
1) Company has strong and diverse existing portfolio base.
2) It has established track record, favourable national policy support and visibility for future growth.
3) It has reliable cash flow supported by long-term O&M contracts with high credit quality counterparties.
4) Company is supported and promoted by our parent company, IWL.
5) It has established supply chain in place.
6) Company has strong and experienced management team.
What are the Objects of the IPO Offer?
Inox Green Energy IPO Size is Rs 740 Crores which has OFS and fresh issue
1) OFS for Rs 370 Crores – Under OFS, selling shareholders would sell their shares and the company would not get any money from this IPO proceeds.
2) Fresh issue of Rs 370 Crores – Fresh issue would be used for the following:
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the Company including redemption of Non- Convertible Debentures in full.
- General corporate purposes.
Who are the promoters of Inox Green Energy Limited?
Inox Wind Limited is the promoter of the company.
How is the company financial track record?
Here are the total assets, revenues and profits of the company in the last 3 years and 3 months.
|Financial Year ending / Period ending (Amt in Crores)|
|Profit After Tax||1.7||-27.7||-5.0||-11.6|
Why to invest in Inox Green Energy IPO?
Here are the positive factors in this company.
1) Inox Green Energy Services is one of the major wind power operation and maintenance service providers within India.
2) Company has generated stable revenue growth in the last 3 years.
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Risk Factors of investing in Inox Green Energy IPO
1) Company has been incurring losses in the last 2 years and 3 months. Investors would not get anything from loss making companies.
2) Company IPO proceeds contains OFS also where such funds would go to selling shareholders and company would not get benefit from this.
3) Company is entirely dependent on Inox Wind, its promoter for its business. If they were to choose another service provider for operation and maintenance services of their wind turbine generators, its business would get affected
4) Company has provided certain entities have provided security in form of pari-pass charge on its movable fixed assets, guarantees and shortfall undertaking against the term loan facilities availed by Resco Global Wind Services and failure by Resco to repay such loan facilities, could have adverse effect on its business.
5) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.
Inox Green Energy IPO Valuation
Inox Green Energy IPO price band is Rs 61 to 65 per share.
We cannot compute P/E ratio as company has been incurring losses in the last 2 years and 3 months.
How much portion allocated to each group of investors in this IPO?
1) QIB – Not less than 75% of the offered shares
2) NII / HNI – Not less than 15% of the offered shares
3) Retail – Not less than 10% of the offered shares
Is it good or bad for investment?
An investor should always invest in a company that has strong financial track record. This company has generated stable revenue growth in the last 3 years and 3 months. However, it is incurring losses in the last couple of years.
What is Inox Green Energy IPO GMP today?
GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about the IPO price as it is unorganized market.
Inox Green Energy GMP today as per market observers is between Rs 10 to Rs 20.
Inox Green Energy IPO GMP Chanakya – Nil
Inox Green Energy GMP as per IPOCentral – Nil
Inox Green Energy IPO GMP IPOWatch – Nil
Inox Green Energy IPO GMP IPO Bazar – Nil
Inox Green Energy dates – subscription, Allotment and Listing
|Finalization of Allotment||18-Nov-22|
|Initiation of Refunds||21-Nov-22|
|Credit to Demat Account||22-Nov-22|
|IPO Shares Listing Date||23-Nov-22|
How to buy Inox Green Energy IPO online through Zerodha?
If you do not have Zerodha account, sign-up here and proceed to the next step.
If you have a demat account with Zerodha, you can apply this IPO online using the UPI as a payment gateway. Zerodha customers can apply in this IPO by login into Zerodha Console submitting an IPO application form.
Follow below steps to apply this IPO in Zerodha platform:
1) Visit the Zerodha portal and login to the console.
2) Go to Portfolio and click the IPOs link.
3) Visit ‘Inox Green Energy Limited IPO’ row and click the ‘Bid’ button.
4) Enter your UPI ID, Qty and the Price which you want to bid.
5) Click on ‘Submit’ IPO application form.
6) Visit the UPI App (net banking or BHIM) to approve the mandate.
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Inox Green Energy IPO Review – Should you Subscribe?
After going through all these points, you might be wondering whether Inox Green Energy IPO is good for investment or not?
Inox Green Energy Services is one of the major wind power operation and maintenance service providers within India. It had stable revenue growth in the last 3 years.
On the other side, it has been incurring losses in the last 2 years and 3 months. IPO proceeds contains OFS also where such funds would go to selling shareholders and company would not get benefit from this. Its group company Inox Wind was listed in 2015 at Rs 450 (issue price Rs 365) and after 7 years it is still trading at Rs 150.
I would like to avoid this IPO as of now considering majority of the negative factors.
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thanks, for the review.
Sir, Many thanks for your analysis. The investors don’t get any allotment in really good IPOs. Moreover, it is not always possible for them to monitor the stock market regularly & buy the share at its lowest prices. So, they can earn at least some returns from these types of IPOs as a listing gain. Of course, this is my personal opinion.