Inox India Limited IPO: Exploring the Cryogenic Industry’s Investment Opportunity
Introduction: Inox India Limited IPO
With its upcoming IPO, presents an enticing investment prospect in the realm of cryogenic equipment manufacturing and supply. The IPO, an offer for sale totaling Rs 1,459.32 crores, opens for subscription on December 14, 2023, and closes on December 18, 2023. The allotment is expected to be finalized by December 19, 202
3, followed by its listing on BSE and NSE tentatively set for December 21, 2023.
Company Overview:
Established in 1976, Inox India Limited specializes in manufacturing and supplying cryogenic equipment across three vital divisions: Industrial Gas, LNG, and Cryo Scientific. These divisions cater to various industries, including industrial gases, LNG, green hydrogen, healthcare, aerospace, and more. The company’s portfolio encompasses a wide range of cryogenic tanks, systems, and turnkey solutions, serving both domestic and international markets.
Inox CVA IPO Details:
The IPO offers shares in the price band of ₹627 to ₹660 per share, with a minimum lot size of 22 shares. For retail investors, the minimum investment required stands at ₹14,520, while sNII and bNII have their lot size investments set at ₹203,280 and ₹1,001,880, respectively. ICICI Securities Limited and Axis Capital Limited are the book running lead managers, and Kfin Technologies Limited is the registrar for the issue.
| IPO Date | December 14, 2023 to December 18, 2023 |
| Listing Date | [.] |
| Face Value | ₹2 per share |
| Price Band | ₹627 to ₹660 per share |
| Lot Size | 22 Shares |
| Total Issue Size | 22,110,955 shares (aggregating up to ₹1,459.32 Cr) |
| Offer for Sale | 22,110,955 shares of ₹2 (aggregating up to ₹1,459.32 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 90,763,500 |
Promoters and Holding:
The company’s promoters include Pavan Kumar Jain, Nayantara Jain, Siddharth Jain, and Ishita Jain.
| Share Holding Pre Issue | 99.30% |
| Share Holding Post Issue | 75.46% |
Business Divisions:
- Industrial Gas Division: Designs, produces, and installs cryogenic tanks and systems for industrial gas storage, transportation, and distribution, including green hydrogen and oxygen.
- LNG Division: Provides standard and engineered equipment for LNG storage, distribution, and transportation, catering to industrial, marine, and automotive applications.
- Cryo Scientific Division: Offers equipment and turnkey solutions for scientific and industrial research involving cryogenic distribution, focusing on technology-intensive applications.
Market Presence and Order Book:
Inox India Limited has a global presence, exporting its products to 66 countries, including the United States, Saudi Arabia, the Netherlands, and more. With manufacturing facilities located in Kalol, Kandla SEZ, and Silvassa, the company’s order book stood at ₹10,366.09 million as of September 2023.
Objectives of the Issue:
The primary objectives of the IPO are to carry out the Offer for Sale by the Selling Shareholders and to leverage the benefits of listing its Equity Shares on the stock exchanges. The company anticipates increased visibility, enhanced brand image, and a public market for its Equity Shares in India, benefitting the Selling Shareholders through the proceeds after deducting expenses and taxes.
Conclusion:
Inox India Limited’s IPO presents an opportunity for investors to delve into the burgeoning sector of cryogenic equipment. With a robust portfolio, global outreach, and diverse applications across industries, the IPO offers a gateway to a promising investment avenue in the evolving market of cryogenics.
