Review By Dilip Davda on March 11, 2015
Inox Wind Ltd (IWL) is a Gujarat Fluorochemicals Ltd subsidiary that is going public with book building process IPO of approx 3.15 crore equity shares of Rs. 10 each with a price band of Rs. 315-325. IWL is engaged in renewable energy segment and is one of the leading wind power solution providers manufacturing wind turbine generators and taking contracts on turnkey basis. To part finance its expansion and up gradation of existing manufacturing facilities, investment in subsidiaries and raise general corpus fund, it is entering the capital market with its maiden IPO.
The issue opens on 18.03.15 and will close on 20.03.15. The issue is a combo of fresh equity as well as offer for sale. Parent company Gujarat Fluorochem is offering 1,00,00,000 equity shares and the rest is fresh issue. The issue includes 5,00,000 shares reserved for the employees. Minimum application is to be made for 45 shares and in multiples thereon, thereafter. Retail investors and Employees will get discount of Rs. 15 per share. Company’s equity capital of Rs. 40 crore issued at par stood enhanced to Rs. 200 crore in May 2013 with issue of bonus shares in the ratio of 4 shares for every 1 share held. This will further rise to approx Rs. 221 crore post issues. Issue is lead managed by Axis Capital Ltd, BofA Merrill Lynch, Edelweiss Financial Services Ltd and Yes Bank Ltd. Link Intime India Pvt Ltd is the registrar to the issue. Post allotment, shares will be listed on BSE and NSE.
For the nine months ended December 31, 2014 and the years ended March 31, 2014, and 2013, respectively, IWL produced and sold 190, 165, 99 and 60 WTGs of 2 MW each; and its total revenue was Rs. 1794.99 crore, Rs. 1576.34 crore, Rs. 1063.68 crore and profit after tax was Rs. 179.31 crore, Rs. 131.46 crore and Rs. 150.42 crore. For the said periods, IWL has erected and commissioned 90, 75 and 77 WTGs. The company did not provide installation services prior to the year ended March 31, 2012. Based on first three quarters earnings the annualized EPS on equity of Rs. 200 crore stands at Rs. 11.95 and on fully diluted equity post IPO it comes to Rs. 10.86. Thus the asking price on fully diluted equity is at a P/E of around 30. Thus issue appears aggressively priced.
As the company belongs to well known investor friendly group and the renewable energy sector is set for a big boost going forward, moderate investment for long term plan may be considered.
Disclaimer: Author has no plans to invest in this IPO. Investors can use their own discretion for investing in this IPO, as any investment in stock market is attached to market risks.
Review By Dilip Davda on March 11, 2015
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
The initial public offer (IPO) of Inox Wind Ltd. offers an early investment opportunity in Inox Wind Ltd.. A stock market investor can buy Inox Wind IPO shares by applying in IPO before Inox Wind Ltd. shares get listed at the stock exchanges. An investor could invest in Inox Wind IPO for short term listing gain or a long term.
Read the Inox Wind IPO recommendations by the leading analyst and leading stock brokers.
Inox Wind IPO offers an opportunity to buy IPO shares before they get listed at the stock exchanges. Read the Inox Wind IPO Notes, Analysis and Recommendations by leading stock brokerage firms and experts mentioned in the above answer to "How is Inox Wind IPO?"
Our recommendation for Inox Wind IPO is to subscribe for long term.
As per the analysis by our lead analyst Mr. Dilip Davda, we suggest you to subscribe for long term to the Inox Wind IPO.
The Inox Wind IPO allotment status will be available on or around [.]. The allotted shares will be credited in demat account by [.]. Visit Inox Wind IPO allotment status to check.
