Here is a short post facto report on the Inox Wind IPO.
- The IPO received excellent response with an 18 times over-subscription.
- Retail was only 2 times over while institutional, HNI and corporates’ portions were subscribed over 35 times.
- Naturally the pent up demand showed up on listing.
- Listing on April 9th, yesterday, was enthusiastic and the share closed the day with a 35% gain at Rs 438.
- Today, at the time of going into the cloud, the share is at 442, a solid 43% gain for Retail investors.
- We will reiterate our advice as below, its a medium risk BUY, and hold for 2 years.
Happily for us at JainMatrix, another win and a correct analysis, (so far).
- Date 18th March 2015
- Price range: Rs. 315-325
- IPO Period: 18-20th Mar 2015
- Mid Cap – Rs 7200 cr Mkt Cap
- Industry – Wind Power (Equipment and Projects)
- Advice: medium risk BUY, and hold for 2 years
- INOX is certainly in the right sector of Wind power generation, where we should see good double digit growth for a decade. It also is an environmentally positive segment. The government is doing a lot to promote / subsidize it.
- The firm itself has scaled up well so far, and the promotor group is good. There is also a scarcity of good quality listed firms in this sector.
- The challenge for this firm is to manage costs, cash flows and technology stability. It has to perhaps slow down growth in the next few years, in order to be a more financially feasible concern.
- The INOX Wind IPO is rated a BUY, with medium risk, and investors can purchase for a 2 year holding period.
Inox Wind – 5 year financials
- IPO is open from 18-20th Mar 2015 with Issue Price band: Rs.315-325 per share
- There is a discount of Rs 15 for retail and employee categories
- Shares offered to public: 3.26 crores of Face Value: Rs.10 per share
- Shares offered as portion of equity post issue: 13.9%
- Amount proposed to be raised: Rs.1025 crores (at upper end). The IPO proceed will be used for:
- 300 crore is an exit by Inox Wind promoter Gujarat Fluorochemicals
- 300 crore will be used to fund long term working capital requirements
- 150 crore towards expansion of manufacturing facilities in Himachal Pradesh and Gujarat
- 150 crore for project site development, mostly by subsidiary IWISL
- The rest of about 100 crore will be for General Corporate Purposes
- These objects appear to be reasonable and will grow the core business of wind power generation.
Download this Research Report
JainMatrix Investments has created a 5 page Research report of INOX Wind IPO. This captures our unique perspective on INOX including Promoter Group review, Industry and Competition Notes, Strengths /Positives, Risks and Challenges and Overall Opinion.
This report is now available for your usage. Click link above to download the PDF format report.
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Disclosures and Disclaimer
This document has been prepared by JainMatrix Investments Bangalore (JM), and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to others without prior permission of JM. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security. The information contained in this report has been obtained from sources that are considered to be reliable. However, JM has not independently verified the accuracy or completeness of the same. Neither JM nor any of its affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein. Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend upon the recipient’s particular circumstances and, in case of doubt, advice should be sought from an independent expert/advisor. JM has been publishing equity research reports since Nov 2012. JM and its promoters/ employees have no financial interest in Inox Wind Ltd or their group companies, and no known material conflict of interest as on date of publication of this report. Any questions should be directed to the director of JainMatrix Investments at firstname.lastname@example.org