Inox Green Energy Services IPO lists 7.7% lower, stays weak

Inox Green Energy IPO had a rather tepid listing on 23rd November 2022, listing at a discount of 7.7%, and closing the day well below the IPO price as well as the listing price on the first day of trading. While the stock did show some bouts of volatility during the day it closed the day on a subdued note. Inox Green Energy Services closed nearly 9% below the issue price on the first day of trading on the NSE. With subscription of just 1.55 times overall and QIB subscription at a meagre 1.05 times, the listing was expected to be flat to weak on the first day of trading. Here is the Inox Green Energy Services listing story on 23rd November 2022.

Inox Green Energy IPO price was fixed at the upper end of the band at Rs. 65 which is rather ambitious considering that the response to the issue was rather disappointing at 1.55 times overall subscription and just 1.05 times subscription for the QIB portion. The price band for the IPO was Rs. 61 to Rs. 65. On 23rd November 2022, the stock of Inox Green Energy Services listed on the NSE at a price of Rs. 60, a discount of 7.7% below the issue price of Rs. 65. On the BSE also, the stock listed at Rs. 60.50 a discount of 6.92% below the issue price.

On the NSE, Inox Green Energy Services closed on 23rd November 2022 at a price of Rs. 59.25. That is a first day closing discount of -8.85% on the issue price of Rs. 65. However, the stock closed at a discount of just -1.25% on the listing price of Rs60 per share. On the BSE, the stock closed at Rs. 59.10. That represents a first day closing discount of -9.08% below the issue price but closed at a discount of just -2.31% on the listing price on the stock exchange. On both the exchanges, the stock listed below the IPO price and stayed lower. In fact, the high price on the listing day for Inox Green Energy Services was less than the IPO price for the day. While the closing was well below the issue price, it was also marginally below the listing price of the day. Clearly, the reason for the weak performance on the day of listing is the tepid response to the IPO in terms of subscription. Also, there have been a surfeit of IPOs in the last few weeks and ahead of the Fed minutes expected to be announced on Thursday, markets are playing a rather cautious tune.

On Day-1 of listing, Inox Green Energy Services touched a high of Rs. 64 on the NSE and a low of Rs. 58.35. The discount to the issue price sustained through the day but lost value towards the close of the day. In fact, if you look at the range of prices, the stock never really went above the listing price through the day and even the high price of the stock is below the listing price. However, the pressure on the stock is visible from the fact that the close was much lower than the high and also much lower than the listing price for the day, showing profit booking at higher levels. The stock closing was nearer to the lows. On Day-1 of listing, the Inox Green Energy Services stock traded a total of 400.24 lakh shares on NSE amounting to value of Rs. 243.395 crore on the first day, which is rather tepid volumes on Day-1. The order book during the day showed a lot of selling pressure at every bounce in the stock price with the sell orders exceeding the buy orders for better part of the trading session. The pressure gathered momentum in the second half.

On Day-1 of listing, Inox Green Energy Services touched a high of Rs. 63.95 on the BSE and a low of Rs. 58.50. The discount to the issue price sustained through the day but lost value towards the close of the day. If you cast a quick glance at the range of prices, the stock never really went above the listing price through the day and even the high price of the stock is below the listing price. However, the pressure on the stock is best manifested by the fact that the close was much lower than the high and also much lower than the listing price for the day, showing profit booking at higher levels. The stock closing was very near to the lows of the day. On Day-1 of listing, the Inox Green Energy Services stock traded a total of 34 lakh shares on NSE amounting to value of Rs. 20.74 crore on the first day, which is rather decent volumes on Day-1. The order book during the day showed a lot of selling pressure at every bounce in the stock price with the sell orders exceeding the buy orders for better part of the trading session. Normally, BSE volumes tend to be substantially lower than the NSE, but the price pattern and movement on day 1 has almost been the same.

At the close of Day-1 of listing, Inox Green Energy Services had a market capitalization of Rs. 1,725.36 crore with free-float market cap of Rs. 362.33 crore.