Inox India IPO: Date, Price, GMP, Review, Analysis and Details
Inox India IPO
Inox India IPO: Charting the Course for Cryogenic Leadership and Market Dynamics
Inox India, a leading player in cryogenic storage tank manufacturing, is set to make its mark in the capital market with its Initial Public Offering (IPO) opening on December 14.
The company, based in Gujarat, aims to raise Rs 1,459.32 crore at the upper price band, signaling a significant milestone in its growth journey.
This comprehensive analysis delves into the intricacies of Inox India’s IPO, exploring its financials, market positioning, risk factors, and the broader industrial landscape.
IPO Overview:
The IPO, consisting solely of an Offer for Sale (OFS) of 2.21 crore equity shares, marks Inox India’s foray into the public market.
The absence of new share issuance underlines the focus on providing an exit opportunity for existing shareholders while leveraging the market for future growth initiatives.
The IPO opens a window for investors to participate in the company’s growth story, with a bidding period extending from December 14 to 18.
Price Band and Lot Size:
Inox India has set the price band for its public issue at Rs 627-660 per share, offering potential investors a clear valuation range.
The lot size for investment is set at a minimum of 22 equity shares, providing flexibility for investors with varying preferences and capital allocation.
Promoter’s Stake and OFS Participants:
Key stakeholders participating in the OFS include promoter Siddharth Jain, Pawan Kumar Jain, Nayanthara Jain, Ishita Jain, Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta.
The OFS structure allows existing shareholders to divest a portion of their holdings while enabling the company to achieve listing without diluting its equity through new share issuance.
IPO Dates and Listing Schedule:
The IPO will be open for subscription from December 14 to 18. Following the subscription period, the listing of Inox India shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is scheduled for December 21.
The timeline is strategically positioned to capture market interest and provide investors with a clear path for post-listing activities.
Reserved Share Distribution:
Inox India has allocated 50% of the public issue to Qualified Institutional Buyers (QIBs), targeting institutional investors.
The allocation also includes 15% for High Net Worth Individuals (HNIs) and 35% for retail investors.
This distribution strategy aims to diversify the investor base and ensure broad market participation, contributing to overall market liquidity.
Lead Managers and Registrar:
The book running lead managers for the IPO are ICICI Securities and Axis Capital, bringing their expertise to oversee the IPO process. Kfin Technologies Limited serves as the registrar, managing the logistics and administrative aspects of the IPO.
Gray Market Premium:
In the gray market, Inox India shares are trading at a premium of Rs 363, indicating early market enthusiasm and potentially setting the tone for a positive market reception.
The gray market premium often serves as an informal indicator of investor sentiment ahead of the official listing.
Financial Performance:
In the fiscal year 2022-23, Inox India showcased robust financial performance. The net profit surged by 17% year-on-year, reaching Rs 152.7 crore, highlighting the company’s profitability.
Additionally, the revenue experienced a commendable growth of 23.4%, totaling Rs 966 crore. This financial resilience positions Inox India as a formidable player in the cryogenic storage sector, catering to diverse industries.
Business Segments and Industry Presence:
Inox India’s diverse portfolio encompasses standard cryogenic tanks and equipment, beverage kegs, bespoke technology and equipment, and large turnkey projects.
These offerings find applications across industries such as industrial gases, liquefied natural gas (LNG), green hydrogen, energy, steel, and healthcare.
The company’s strategic focus on serving these industries aligns with the evolving demands of sectors pivotal to economic growth.
Cryogenic solutions are integral to various applications, from ensuring the supply chain of industrial gases to facilitating the development of emerging technologies like green hydrogen.
Risks and Cautionary Factors:
- Export Dependency: In the six-month period ending September 30, 2023, Inox India’s revenue from exports constituted a substantial 62.18% of its total business. While export-led growth is a testament to the company’s global presence, it exposes Inox India to potential risks arising from external factors such as tariffs, trade barriers, and international sanctions. A slowdown in exports could have adverse implications for the company’s overall business performance.
- Quality Compliance Concerns: Given the stringent quality requirements of the industrial gas sector, Inox India is subject to risks associated with compliance standards, particularly those set by the Petroleum and Explosives Safety Organization (PESO). Any failure to adhere to these standards may result in the cancellation of existing and future orders, posing a challenge to sustained growth.
Market Landscape and Growth Prospects:
The cryogenic storage sector holds immense potential, fueled by the increasing demand for industrial gases, LNG, and emerging technologies like green hydrogen.
Inox India’s strategic presence in key industries positions it as a key player poised to capitalize on these growth opportunities.
The company’s track record of serving diverse sectors and providing end-to-end solutions positions it favorably in a market characterized by technological advancements and evolving industry requirements.
As industries continue to embrace cryogenic solutions for various applications, Inox India’s role in facilitating these advancements becomes increasingly significant.
Final Remarks:
As Inox India embarks on its IPO journey, investors are presented with an opportunity to be part of a company at the forefront of cryogenic storage technology.
The IPO’s structure, financial performance, market positioning, and associated risks present a comprehensive landscape for potential investors to evaluate.
The strategic allocation of shares, diversified investor categories, and the gray market premium reflect an early positive sentiment surrounding the IPO.
As Inox India gears up for listing on December 21, the market will closely monitor the stock’s performance, providing insights into investor confidence and industry dynamics.
Inox India’s IPO is not just a financial event; it symbolizes the convergence of technology, industry, and market participation.
Investors seeking exposure to the growing cryogenic sector and industrial manufacturing landscape have a unique opportunity to explore the potential offered by Inox India’s public offering.
