Gujarat Fluorochemicals-promoted wind power solutions provider Inox Wind Ltd made a strong debut on the stock exchange, listing at a premium of 23 per cent to its issue price of Rs 325 a share and ended day 1 at Rs 438 a share at the BSE on Thursday – around 35 per cent higher than the IPO price.
Wind turbine generator manufacturer Inox Wind's share price touched an intraday high of Rs 447.80 a share and a low of Rs 399.15 a unit before closing at Rs 438 a share on the BSE in a strong Mumbai market. It currently has a market cap of Rs 9,720 crore ($1.56 billion).
In its recently concluded initial public offer (IPO), the Inox Group company raised Rs 700-crore besides an offer for sale worth Rs 325 crore from the promoter. The issue was subscribed over 18 times.
This was the first public issue to see bumper subscription after poor issues of two PE-backed firms Ortel Communications Ltd and Adlabs Entertainment Ltd, which raised a red flag on the appetite of investors for the primary market.
Inox Wind had also roped in a bevy of mutual fund and foreign portfolio investors who together picked 9.42 million shares at the upper end of the price band committing Rs 306.3 crore as anchor investors.
The company, which was incorporated in April 2009 and started operations in March 2010, is a subsidiary of Gujarat Fluorochemicals Ltd. Besides the parent, the group also has a separate listed firm under Inox Leisure Ltd.
Another listed firm in the same domain is Suzlon Energy Ltd, which has been under severe financial stress due to debt pile-up from large acquisitions overseas. It has sold off bulk of those assets as part of a restructuring to clean its balance sheet. Recently, Sun Pharma promoters announced a plan to come in as a co-promoter in Suzlon.
(Edited by Joby Puthuparampil Johnson)
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