Inox Wind ends with almost 35% premium

At Rs 438 on BSE

Shares of Inox Wind settled at Rs 438 on BSE, a premium of 34.77% over the initial public offer price of Rs 325.

Meanwhile, the S&P BSE Sensex rose 177.46 points or 0.62% at 28,885.21.

The stock debuted at Rs 400 on BSE, a premium of 23.08% over its initial public offer (IPO) price. The stock hit a high of Rs 447.80 and a low of Rs 399.15 during the day. On BSE, 1.13 crore shares were traded on the counter.

The IPO of Inox Wind closed on 20 March 2015. It was subscribed 18.60 times, with total bids for 43.15 crore shares compared with 2.32 crore share on offer. The company had priced its recently concluded initial public offer (IPO) at upper end of Rs 315-325 per share.

Qualified institutional buyers (QIBs) category was subscribed 35.68 times, non institutional investors' category was subscribed 35.38 times and retail individual investors (RIIs) category was subscribed 2.15 times.

Inox Wind's IPO included a fresh issue of Rs 700 crore and an offer for sale of 1 crore shares by the promoter, Gujarat Fluorochemicals. The offer had opened for bidding on 18 March 2015.

The issue offered a discount of Rs 15 on the issue price to retail individual bidders. Five lakh shares are reserved for the employees.

The IPO committee of Inox Wind at its meeting held on 17 March 2015, finalized the allocation of 94.25 lakh equity shares to a total of 16 anchor investors at Rs 325 per share, the top end of the Rs 315-325 per share price band for the IPO. The company had raised Rs 306.32 crore from allocation of shares to anchor investors.

In addition to achieve the benefits of listing the equity shares on stock exchanges, enhance the visibility and brand image among existing and potential customers and provide liquidity to the existing shareholders, the company intends to expand and upgrade the existing manufacturing facilities and spend about Rs 148 crore. It intends to expand the capacity of the rotor blade manufacturing facility from the current capacity of 256 rotor blade sets to 400 rotor blade sets per annum, including adding the capability to produce 100 meter rotor diameter rotor blade sets, and also intends to expand the capacity of the tower manufacturing facility from the current 150 towers per annum to 300 towers per annum. It also intends to invest in new equipment at their nacelle and hub manufacturing facility with a view to optimizing the capacity of the Una unit. It further intends to invest about Rs 132 crore in wholly owned subsidiary Inox Wind Infrastructure Services, for development of power evacuation infrastructure and other infrastructure development and about Rs 290 crore for long-term working capital requirement and rest for general corporate purposes.

Inox Wind's consolidated net profit fell 12.6% to Rs 131.46 crore on 48% rise in net sales to Rs 1567.20 crore in the year ended 31 March 2014 (FY 2014) over FY 2013.

Promoted by Gujarat Fluorochemicals (GFL) and part of the Inox Group, Inox Wind is India's 4th largest wind turbine generator (WTG) manufacturer. The Inox Group commenced operations in 1923 and operates in the industrial gases, engineering plastics, refrigerants, chemicals, cryogenic engineering, renewable energy and entertainment sectors. The Inox Group includes two publicly-listed companies, GFL and Inox Leisure.

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