GRE Renew Enertech's initial public offering has concluded with a total subscription of 2.26 times, showcasing mixed investor response across different categories. The renewable energy company's public issue witnessed varying levels of participation from institutional and retail investors.

Subscription Performance Breakdown

The IPO subscription data reveals a clear preference among different investor segments:

Institutional Interest Drives Subscription

Qualified Institutional Buyers emerged as the primary drivers of the IPO's success, subscribing 7.04 times their allocated portion. This strong institutional participation indicates confidence in the company's business prospects and growth potential in the renewable energy sector.

Retail and HNI Response

The retail segment showed subdued interest with a subscription rate of 0.31 times, suggesting limited appetite among individual investors. Non-Institutional Buyers in both high net worth categories remained below the subscription threshold, with bHNI at 0.49 times and sHNI at 0.46 times.

Notably, the employee quota remained unsubscribed at 0.00 times, indicating no participation from company employees in the public offering.

Market Reception

The overall subscription of 2.26 times reflects moderate market reception for GRE Renew Enertech's IPO. While institutional investors demonstrated strong confidence, the lukewarm response from retail and high net worth individual segments contributed to the mixed subscription pattern across investor categories.

GRE Renew Enertech's SME initial public offering achieved full subscription on its opening day, demonstrating strong investor interest in the solar energy solutions provider. The ₹39.56 crore public issue opened for subscription on Tuesday, January 13, and will remain open for bidding until Friday, January 16.

Strong Institutional Demand Drives Subscription

The IPO recorded impressive subscription numbers on the first day, achieving 1.04 times subscription as of 2:50 pm on Tuesday, according to BSE data. The subscription pattern revealed significant institutional appetite, with different investor categories showing varying levels of interest.

The QIB category emerged as the primary driver of demand, substantially oversubscribing their allocated portion, while retail and non-institutional segments remained undersubscribed on the opening day.

Business Model and Operations

GRE Renew Enertech specializes in delivering solar energy solutions for industrial and commercial clients through comprehensive on-site solar project installations. The company operates through two distinct business segments that cater to different client requirements and investment preferences.

Under the Capital Expenditure (Capex) segment, the company provides comprehensive end-to-end services including engineering, procurement, construction, and operation of solar installations. The Renewable Energy Service Company (RESCO) model involves entering into agreements with rooftop owners to develop and operate solar projects, offering an alternative financing and operational structure.

IPO Structure and Investment Details

The book-built issue comprises entirely of fresh equity shares, with no offer for sale component. The company has set the price band between ₹100 and ₹105 per share, making it accessible to a broad range of investors.

Investors can apply in lots of 1,200 shares, with the minimum retail investment requirement set at ₹2,52,000 for 2,400 shares at the upper end of the price band.

Grey Market Performance and Timeline

The shares are currently trading at a premium of ₹7 in the grey market, according to Investorgain, representing the current Grey Market Premium (GMP). This premium decreased from the pre-opening level of ₹9, suggesting some moderation in unofficial market expectations.

Based on the current GMP, the estimated listing price stands at ₹112, which represents a 6.67% premium over the upper price band of ₹105. The allotment process is scheduled to be finalized on January 19, with the company's shares expected to list on the BSE SME platform on January 21.

Issue Management

The IPO has appointed experienced intermediaries to manage the public offering process. Share India Capital Services Pvt. Ltd. serves as the book-running lead manager, while Maashitla Securities Pvt. Ltd. has been appointed as the registrar to the issue. Share India Securities Ltd. will function as the market maker post-listing.