The scrip, against the issue price of Rs 65 apiece, got listed at a discount of 8% at Rs 60 per share on the National Stock Exchange (NSE). On BSE, the stock made its debut at Rs 60.50 apiece, a discount of 7%.
Following the listing, shares of Inox Green Energy Services extended their losses to another 3% and hit an intraday low of Rs 58.7 and widened the entire cut to 10% from the given issue price.
Market experts have a tepid view on the counter and suggested investors to exit it. However, a few suggested that it might be a long-term play and advised accumulation at lower levels.
Pravesh Gour, Senior Technical Analyst,
said the company has been incurring losses for the last two years, and according to the IPO objective, the funds raised will be used to pay off liabilities.
“Finally, the performance of its group is also not attractive enough,” he added and suggested investors exit the counter with a stop loss of Rs 57 apiece.
Incorporated in 2012, Inox Green Energy Services is one of the major wind power operation and maintenance service providers within India. The company is a subsidiary of .
The company has a presence in Gujarat, Rajasthan, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Kerala and Tamil Nadu, which has long-term operations and maintenance contracts, which range between 5 to 20 years.
Ravi Singh, Vice President and Head of Research, Share India said investors may book their positions at current levels and wait for the financials to improve.
“The operation difficulties, poor financial performance and dependency on parent company have resulted in muted investor confidence,” he added.
The company’s Rs 740 crore IPO was sold in the range of Rs 61-65 per share and received a tepid investor response. It was subscribed only 1.55 times between November 11-15.
The quota reserved for qualified institutional buyers (QIBs) was subscribed 1.05 times while the ones reserved for non-institutional investors (NIIs) and retailers were subscribed 47% and 4.7 times, respectively.
Manoj Dalmia, Founder and Director, Proficient Equities said that Inox Green made a weak market debut following its muted subscription. “Investors can accumulate this share around Rs 65 with a long-term perspective,” he said.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)