Welcome to the forefront of India’s economic evolution with Inox India’s highly anticipated Initial Public Offering (IPO). As the nation surges ahead in its ambitious infrastructure ventures, Inox India emerges as a beacon of innovation and reliability in providing essential solutions. Specializing in cryogenic equipment, storage, and transportation solutions, Inox India plays a pivotal role in shaping the landscape of sectors like chemicals, petrochemicals, and oil and gas. Join us as we delve into the prospects of investing in Inox India IPO, unlocking opportunities aligned with India’s burgeoning infrastructure boom.
This blog explores the company’s journey, financial stability, and the exciting prospects that lie ahead for potential investors.
About Inox India Limited (INOXCVA)
Inox India Limited (INOXCVA), headquartered in Gujarat, stands as a prominent provider of cryogenic equipment, renowned for delivering comprehensive solutions across the entire spectrum of equipment and systems operating in cryogenic environments. From conceptual design to engineering and manufacturing, INOXCVA leads the industry by offering an extensive range of products and services.
Organized into three main divisions—Industrial Gas, LNG, and Cryo Scientific—the company serves diverse sectors including industrial gases, healthcare, green hydrogen, chemicals, energy, aviation, and beyond. INOXCVA’s expertise spans various industries, making it a versatile leader in the field of cryogenic solutions.
Details of the IPO
Key aspects to be aware of regarding the Inox India IPO include:
| IPO Date | December 14-18, 2023 |
|---|---|
| Price Band | Rs 627 to Rs 660 per share |
| Face Value | Rs 2 per share |
| Lot Size | 22 Shares |
| Total Issue Size | 22,110,955 shares (aggregating up to Rs 1,459.32 Cr) |
| Offer for Sale | 22,110,955 shares of Rs 2 (aggregating up to Rs 1,459.32 Cr) |
| Listing Date | BSE and NSE on December 21, 2023 |
| Lead Managers | Axis Capital, Citigroup, ICICI Securities, JM Financial, Kotak Mahindra Bank, SBI Capital Markets |
- Inox India IPO Schedule
- The subscription period for the Inox India IPO will commence on November 14, 2023, and conclude on November 18, 2023.
- Listing Date
- In accordance with the timetable, Inox India shares will commence trading on December 21, 2023.
- Offering Particulars
- In its IPO, the company seeks to generate around Rs 1,459 crores. Notably, the entire issue comprises an Offer for Sale (OFS) of 2.21 crore shares, each with a face value of Rs 2. It’s important to note that there is no provision for a fresh issue segment in this IPO.
- Allocation Breakdown
- Approximately 50% of the offering is reserved for Qualified Institutional Buyers (QIBs), 35% for Retail Investors, and the remaining 15% for Non-Institutional Investors.
- Inox India Share Pricing
- The price range for Inox India’s IPO is set at Rs 627 to Rs 660 per share.
- Lot Size
- The lot size for Inox India IPO stands at 22 shares, requiring an application amount of Rs 14,520. Retail investors have the opportunity to apply for up to 13 lots, equivalent to 286 shares or an amount of Rs 188,760.
Financial Overview of the Company
In the fiscal years concluding on March 31, 2023, and March 31, 2022, Inox India Limited witnessed revenue growth by 22.46%. The profit after tax (PAT) also increased by approximately 17.02%.
Here’s a quick overview of Inox India’s financial breakdown, presented in crores of Indian Rupees.
| Year Ended on | 30 Sep 2023 | 31 March 2023 | 31 March 2022 | 31 March 2021 |
| Assets | 1,155.81 | 1,148.36 | 896.75 | 687.20 |
| Revenue | 580.00 | 984.20 | 803.71 | 608.99 |
| Profit After Tax | 103.34 | 152.71 | 130.50 | 96.11 |
| Net Worth | 554.24 | 549.48 | 502.28 | 371.51 |
Investing in Inox India is a compelling choice for several reasons:
1. Market Leader: Inox India dominates the cryogenic storage tank industry with a 15% global market share.
2. Financial Strength: Consistent growth, with a 22.46% rise in revenue and a 17.02% increase in profit after tax (PAT) from FY22 to FY23.
3. Client Diversification: Serving a variety of industries ensures a diversified revenue stream.
4. Growth Potential: Anticipated market expansion due to rising LNG and green hydrogen demands.
5. Experienced Management: A seasoned leadership team adept in the cryogenic industry, enhancing overall stability and strategic decision-making.
Considerations for Risks
While Inox India offers an enticing investment opportunity, it’s crucial for investors to acknowledge certain potential risks:
- Market Competition: Inox faces competition in the cryogenic storage tank market from various established players.
- Economic Challenges: Global economic downturns may lead to decreased demand for cryogenic storage solutions, impacting Inox.
- Customer Dependency: Inox’s revenue is significantly tied to a select few key customers. Any business loss from these clients could have adverse effects on the company’s overall performance.
Quick Guide: Applying for Inox India IPO in Easy Steps
1. Open Demat Account: Ensure you have one; if not, open through a registered Depository Participant (DP).
2. Verify PAN and KYC: Confirm PAN and update KYC details in your Demat account.
3. Choose Broker: Pick a registered stockbroker, many offering online IPO applications.
4. Login to Broker’s Platform: Log in using your account credentials on the broker’s online platform.
5. Select Inox India IPO: Find Inox India IPO in the available IPO list.
6. Fill IPO Form: Complete the application with necessary details.
7. Make Payment: Pay for the IPO using UPI, net banking, or ASBA.
8. Submit Application: Review and submit the accurate application.
9. Check Allotment Status: Monitor allotment status after IPO closure on the registrar’s website or broker’s platform.
10. Receive Allotment and Refund: Get allotted shares in your Demat account if successful; receive a refund if not.
The Bottom Line
Inox India’s IPO presents an exciting opportunity for investors seeking exposure to India’s thriving infrastructure sector. With a proven track record, a focus on innovation, and a strategic position in a high-growth industry, Inox India is poised for success. However, potential investors should conduct thorough due diligence, considering both the opportunities and risks associated with this investment.
As India continues its journey towards infrastructural development, Inox India’s IPO could be a strategic move for investors looking to participate in the nation’s growth story.
Disclaimer – This blog is for informational purposes only and should not be considered as investment advice.
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