The initial public offering (IPO) for Inox India (InoxCVA) kicks-off for subscription on Thursday, December 14. The Inox Group entity is offering its shares within the fixed price range of Rs 627-660 per share, with a lot size of 22 equity shares and multiples thereof. The bidding for the issue close after three days on Monday, December 18.
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Established in 1976, Inox India specializes in supplying cryogenic equipment, particularly tanks. The company offers comprehensive solutions for equipment and systems operating in cryogenic conditions, covering design, engineering, manufacturing, and installation.
In its IPO, InoxCVA aims to raise Rs 1,459.32 crore, exclusively through an offer-for-sale (OFS) involving up to 22,110,955 equity shares. These shares are being offered by the promoters and other selling shareholders. Since the IPO is solely an offer-for-sale issue, the company will not receive any proceeds from the issue.
INOX India raised Rs 437.8 crore from several anchor investors as it finalised allocation of 66,33,285 equity shares at a price of Rs 660 apiece. Global investors including Abu Dhabi Investment Authority, Nomura Trust, Goldman Sachs, Carmignac Portfolio, HSBC Global, Volrado Venture, and Natixis International Funds invested in the company via anchor book.
InoxCVA specializes in providing cryogenic tanks and equipment, beverage kegs, customized technology, equipment, and turnkey projects. Its offerings cater to various industries, including industrial gases, liquefied natural gas, green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction.
As of September 2023, InoxCVA has exported products and delivered services to 66 countries, including the United States, Saudi Arabia, the Netherlands, Brazil, Korea, the United Arab Emirates, Australia, and Bangladesh. The company’s manufacturing facilities are located in Kalol, Kandla Special Economic Zone (Kandla SEZ), and Silvassa in the Union Territory of Dādra and Nagar Haveli.
The IPO allocates 50 per cent of the offer to qualified institutional bidders (QIBs), with non-institutional investors receiving 15 per cent, and the remaining 35 per cent allocated to retail investors.
ICICI Securities and Axis Capital are the book running lead managers for the InoxCVA IPO, with Kfin Technologies serving as the registrar for the issue. Shares of the company are scheduled to be listed on both BSE and NSE on Thursday, December 21. Here’s what a host of brokerage firms have to say about the IPO of Inox India:
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Anand Rathi Research
Rating: Subscribe for long term
Inox India is well positioned to capture this global market growth with in-house technology as well as LNG product range that includes the entire value chain as on September 2023, company has an order book of Rs 1,036.6 crore. The order book comprises anticipated revenues from the unexecuted portions of existing contracts, said Anand Rathi Research.
“At the upper price band, the company is valuing at P/E of 39.2 times with a market cap of Rs 5,990.1 crore post issue of equity shares and return on net worth of 27.79 per cent in FY23. On the valuation front, we believe that the company is fairly priced,” it added with a ‘subscribe for long term’ rating for the IPO.
Swastika Investmart
Rating: Subscribe
InoxCVA is a leading Indian supplier and exporter of cryogenic equipment. The company’s extensive product portfolio, diversified customer base, robust order book, and stable financial performance demonstrate its strong competitive position and future growth potential. The issue appears fully priced in the absence of directly listed peers, said Swastika Investmart.
“However, considering InoxCVA’s unique position within the clean energy sector, its consistent dividend history, and its promising future growth prospects, we recommend a Subscribe rating to the IPO for both potential listing gains and long-term capital appreciation,” it added
Stoxbox
Rating: Subscribe for long term
Inox Indiais in a sweet spot to benefit from the long-term demand for cryogenic equipment due to the growing focus across the globe to reduce carbon footprint and promote the use of clean sources of energy such as LNG and hydrogen. The company’s healthy financial performance on both topline and bottomline provides confidence on the financial front as well, said StoxBox.
“Its business operations are likely to benefit from its leadership position in cryogenic equipment in India, strong order book, robust product portfolio, marquee clients diversified across sectors and focus on exports, Considering the potential of the industry in which the company operates, we advise investors to subscribe to the issue from a long-term perspective,” it said.
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Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
