Inox Green Energy Services made a poor debut in the market on Wednesday as the stock got listed at Rs 60.50 on BSE, a discount of 6.92 per cent to its issue price of Rs 65. At this price, it commanded a market capitalization of Rs 1,766.23 crore.
On the NSE, the stock started at Rs 60, down 7.69 per cent.
Inox Green Energy commanded a gray market premium of Rs 8-10 during the bidding process, but traded flat just ahead of the listing.
Analysts were a bit cautious about asking valuations and the company’s order book given that most of its contracts were from its parent Inox Wind. However, he was optimistic about the company’s prospects, given its consistent track record, strong parentage and government initiatives to drive the renewable sector.
The IPO by the provider of long-term O&M services for wind farm projects was subscribed 1.55 times led by retail (4.7 times) and qualified institutional buyers (1.05 times). The quota reserved for non-institutional investors was under-subscribed by 47 per cent.
Brokerages such as Arihant Capital Markets, Ventura Securities, Hem Securities and KR Choksi Shares & Securities have ‘Subscribe’ rating on the issue.
There is no Peers listed for INOX Green Energy. Global players include Siemens Gamesa (EV/Ebitda multiple of 35.2 times) and Vestas Wind (EV/Ebitda multiple of 18.7 times for 2021).
Favorable national policy support, a strong and diversified portfolio, backed by parent company Inox Wind, visibility for future growth and long-term O&M contracts, meanwhile, are seen as major positives for Inox Green Energy.
