New IPO Listing: Inox Green shares slid 9% in its debut trade against issue price - Should you Buy, Sell or Hold? Analyst recommends this

New IPO Listing, Inox Green Energy, Inox Green IPO: After making a tepid market debut, Inox Green Energy Services share price on Wednesday closed over 9 per cent lower, near day’s low level at Rs 59.1 apiece on the BSE against the issue price.

In early morning trade today, the stock got listed at a discount of nearly 8 per cent against the issue price of Rs 65.

It listed at Rs 60.50, a fall of 6.92 per cent from the issue price on the BSE, and further fell by 8.92 per cent to Rs 59.20. On the NSE, the stock made its debut at Rs 60, a discount of 7.69 per cent.

The company, which is a subsidiary of Inox Wind, commanded a market valuation of Rs 1,772.07 crore in morning trade on the BSE.

The initial share sale of Inox Green received 1.55 times the subscription. The IPO had a fresh issue of up to Rs 370 crore and an offer-for-sale of up to Rs 370 crore with a price band of Rs 61-65 a share.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd attributed the lukewarm listing of Inox Green to the weak market sentiment. He said, “The market mood is slightly under bears grip and weekly expiry is also fast approaching.”

The analyst said, the company 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 apiece, Gour said in his recommendation.

Inox Green Energy Services is one of the major wind power operation and maintenance service providers in India, specifically for wind turbine generators and common infrastructure facilities on wind farms. The company has plans to grow into a more asset-light business model.