Inox Green Energy made a weak debut on the domestic indices today, listing at Rs 60.5 on the BSE and Rs 60 on the NSE. The shares are currently trading at Rs 62.9, down 4% from its listing price, while the Inox Green Energy IPO price band set between Rs 61 to Rs 65. The company’s shares were available on the grey market for a discount of Rs 1, which had hinted at a subdued listing.

The IPO sought to raise funds through issue of fresh sales and OFS, that comprise Rs 370 crore each, taking the total issue size to Rs 740 crore. The company will use the capital to repay certain borrowings availed and for general corporate purposes.

“Inox had a moderate debut as the market mood is slightly under the bears’ grip and weekly expiry is also fast approaching. Inox Green Energy Services is one of the major wind power operation and maintenance service providers in India. The company has plans to grow into a more asset-light business model. But it has been incurring losses in the last 2 years, so the issue is priced at a negative P/E, and according to the IPO objective, the IPO amount will be used to pay off liabilities. Finally, the performance of its group is also not attractive enough. Hence one should book profit with whatever listing premium they get or put a stop loss of Rs.57,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.

“The wind energy market grew at a healthy rate with capacity additions picking up pace in FY20 after a low in FY19, largely on account of change in regime from feed-in-tariff to auction route,” said a Choice Broking report as they advised investors to subscribe with caution. Inox Green Energy is an operation and maintenance service provider for wind power, wind farm projects and wind turbine generators, also providing service support for the infrastructure facilities on wind farms. Inox Green Energy is a subsidiary of Inox Wind.