Wind power operation and maintenance service provider Inox Green Energy Services has seen muted response for its initial public offering. The offer has garnered bids for 10.37 crore shares against IPO size of 6.67 crore shares, getting subscribed 1.55 times on November 15, the final day of bidding.
Retail investors and qualified institutional investors have majorly provided support to the offer whereas the response from high net worth individuals and non-institutional investors was disappointing.
Inox Green has reserved 75 percent of the offer for qualified institutional buyers, 15 percent for high net worth individuals, and the remaining for retail investors.
Retail investors bought their quota 4.7 times and qualified institutional buyers booked 1.05 times, while the the part for non-institutional investors was subscribed 47 percent.
The subsidiary of wind turbine generators manufacturer Inox Wind aims to garner Rs 740 crore by issuing more than 11.38 crore shares via public issue. Out of this sum, Rs 333 crore has already been raised by the company via anchor book on November 10, a day before the issue opened.
The anchor book forms part of the qualified institutional buyers quota.
The public issue comprises a fresh issuance of shares worth Rs 370 crore and an offer for sale of Rs 370 crore by promoter Inox Wind.
The fresh issue proceeds will be mainly utilised for repaying debts, besides general corporate purposes.
The price band for the offer, which opened on November 11, has been fixed at Rs 61-65 per share.
After closing the issue, Inox Green will finalise the IPO share allotment by November 18. The refunds will be credited to unsuccessful investors by November 21 and eligible investors will receive shares in their demat accounts by November 22.
Finally the company will make its debut on leading exchanges BSE and NSE on November 23.
Inox Green shares traded at 5-8 percent premium to the the upper price band in the grey market, analysts said.
Generally, the grey market, an unofficial platform for trading in IPO shares, is used by investors to foresee the listing price.
Inox Green gets most of its business from parent Inox Wind that sells wind turbine generators and provides turnkey solutions by supplying wind turbine generators.The company provides exclusive operation and maintenance services for all wind turbine generators sold by Inox Wind.