Inox India ((InoxCVA), the largest domestic supplier of cryogenic equipment, would make its market debut on Thursday, December 21.
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Ahead of the stock listing, Inox India was commanding a grey market premium (GMP) of Rs 530, up 88 per cent over the issue price of Rs 660. The Inox India GMP remained firm, as two stock debutants namely DOMS Industries and India Shelter Finance Corporation Ltd delivered up to 77 per cent listing gains in a busy IPO season.
The offer for sale (OFS) was sold in the Rs 627-660 price band from December 14 to December 18 and met with ‘subscribe’ rating by a host of brokerages including Motilal Oswal Securities, Geojit Financial Services, SBI Securities, DRChoksey FinServ and Ventura Securities.
Analysts suggested brand equity, a favorable push from the government on reducing emissions, healthy financial performance, strong R&D capabilities and a broad customer base, among major drivers for Inox India.
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Inox India is a play on a shift towards cleaner fuels and higher investment in electronics/space sectors, analysts said.
Inox India offers end-to-end solutions, covering design, engineering, manufacturing, and installation of cryogenic equipment and systems. It is engaged in manufacturing of cryogenic tanks, beverage kegs, tailor-made technology, equipment, and solutions and overseeing large turnkey projects for diverse industries.
The company has three manufacturing facilities in India with a capacity utilisation of 70 per cent in cryogenic equipment in FY23.
In 2022, the global cryogenic equipment market was valued at $11.5 billion. The global cryogenic equipment demand is expected to grow at a compounded annual growth rate of 6.9 per cent to $16.6 billion by 2028.
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At the global level, the top nine companies accounted for approximately 35-48 per cent of the cryogenic equipment market in Calendar 2022. Inox India is was among the top 10 cryogenic equipment manufacturers in the world by revenue in 2022, as per a CRISIL report.
