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Inox India IPO Details: Launch Date, Share Price, Size, GMP & Review

Inox-India-IPO-Details-Launch-Date,-Share-Price,-Size,-GMP-&-Review

Inox India Limited – About the Company

Inox India Limited or Inox CVA, incorporated in 1976 is a Gujarat-based company. It is a manufacturer and supplier of cryogenic equipment with the business offering mainly into three divisions - (1) Industrial Gas, (2) LNG and (3) Cryo Scientific.

Under these three divisions, from design to engineering to manufacturing company offers industrial-based a plethora of products and services. It deals in industrial gases, hydrogen, chemicals, green energy, aviation, healthcare and more.

The main products of Inox CVA are standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment and solutions. It also delivers large turnkey projects that are used in different industries like industrial gases, liquified natural gas ("LNG"), steel, energy, green hydrogen, aviation and aerospace, chemicals and fertilizers, pharmaceuticals, medical and healthcare, and construction.

In the past three years and as of Sep 30, 2023, the company has delivered and catered its equipment and systems to 1,255 domestic and 254 international customers through all three divisions. Till the same month, the company has exported products and services to 66 countries, including Saudi Arabia, the United States, Australia, Korea, Brazil, the Netherlands, United Arab Emirates, and Bangladesh.

As of Sep 30, 2023, the company has an order book of Rs 10,36.61crore. To meet the order book, the company has manufacturing units located at Kalol, Kandla Special Economic Zone (Kandla SEZ), and Silvassa in the Union Territory of Dādra and Nagar Haveli.

The top clients of the company are Hyundai Engineering and Construction Co Ltd,  Caribbean LNG Inc, 2G Energy Inc, ISRO, Air Liquide Global E&C Solutions India Private Limited and many more.

Inox India IPO Objectives

The main objective of Inox India IPO is to carry out the Offer-for-Sale (OFS) of up to 22,110,955 Equity Shares by the Selling Shareholders to reduce their some of the stakes in the company. All the selling shareholders will be entitled to the entire Offer proceeds after deducting the Offer expenses and relevant taxes.

Another motive of this IPO is attaining the benefits of listing the equity shares on the stock exchanges making publicly available for investors to buy from the secondary market. With the listing of shares on bourses, the company will enhance the visibility of its brand image making it a well-known listed company in the market.

Inox India IPO Details:

IPO Open Date 14-Dec-23
IPO Close Date 18-Dec-23
Basis of Allotment 19-Dec-23
Listing Date 21-Dec-23
Face Value Rs 2 per share
Price Rs 627 to Rs 660 per share
Lot Size 22 Shares
Issue Size 22,110,955 shares
(aggregating up to Rs 1,459.32 crore)
Offer For Sale 22,110,955  Shares, aggregating up to Rs 1,459.32 crore
Fresh Issue No Fresh Issue
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue

 

Inox India IPO Issue Price & Size

The issue price of Inox India IPO is in the range of Rs 627 to Rs 660. Investors can bid in the IPO between these lower and higher price bands. The total issue size of Inox India IPO is Rs 1459.32 crore and the entire issue will be offered for sale by the shareholders.

Inox India IPO Launch Date

Inox India IPO will be open on 14 Dec 2023 and IPI bidding will be closed on18 Dec 2023. The launch date is officially declared and investors who are looking to invest in the Inox India IPO can bid between the date of 14Dec and 18 Dec 2023.

Inox India Financial Statements:

Particulars (Rs in Million) FY23 FY22 FY21 CAGR  
Revenue from Operations 9,659.00 7,827.11 5937.97 27.54%  
Other Income 182.99 210.02 151.95
Total Income 9,841.99 8,037.13 6,089.92 27.13%
Operational Expenses 5117.47 4111.62 3082.44
Other expenses 2498.01 2039.20 1510.50  
EBITDA 2226.5 1886.3 1496.98 21.96%  
EBITDA Margin% 23.05% 24.10% 25.21%  
Depreciation 139.17 121.00 117.76  
Interest 36.85 23.24 68.57  
Profit Before Tax 2050.49 1742.07 1310.65    
Total tax 523.35 437.09 349.58
PAT 1527.14 1304.98 961.07 26.06%  
PAT Margin% 15.81% 16.67% 16.19%  
EPS Basic (Rs) 16.83 14.38 10.59 26.06%

Source: DRHP

Inox India Financial Performance

For the period ended Sep 30, 2023 the revenue of Inox India stood at Rs 580 crore. In FY23, the total revenue of the company was Rs 984.20 crore which grew at a CAGR of 27.13% from Rs 68.99 crore in FY21. In FY23,the EBITDA of the company was Rs 222.65 crore which has grown at a CAGR of 21.96% from Rs 149.70 crore in FY21.

In the first half of FY24,the Profit After Tax of the company stood at Rs 103.34 crore. In FY23 the PAT was Rs 152.71 crore and Rs 130.50crore in FY22. In FY21 the Net Profit was Rs 96.18 crore which has grown at a CAGR of 26.06% between FY21-FY23.

The company has tried to maintain the EBITDA margins for the last three years, but it has marginally come down from 25.21% in FY21 to 23.05% in FY23. Similarly, the Net Profit Margin of the company has slightly decreased from 16.19% in FY21 to 15.81% in FY23. And thanks to better profit margins the  Earnings Per Share (EPS) of the company improved from Rs 10.59 per share to Rs 16.83 per share.

Inox India IPO Promoters & Shareholding of the Company

Siddharth Jain, Pavan Kumar Jain and Nayantara Jain are the main promoters of the company holding 45.63%, 21.93% and, 21.23% stakes respectively in Inox India Limited.

Other members from the promoters group are Devendra Kumar Jain and Ishita Jain held 5.94% and 2.72% stakes in the company, while Manju Jain and Lata Rungta also held 1.01% and 0.84% stakes respectively. For the details of the number of equity shares held by the promoters and shareholders selling their stakes in the company check the tables below.

S.No. Name of the Shareholder No. of Equity Shares held % of pre-Offer Shareholding
1 Pavan Kumar Jain 19,903,090 21.93%
2 Nayantara Jain 19,267,250 21.23%
3 Siddharth Jain 41,416,060 45.63%
4 Ishita Jain 2,471,600 2.72%
  Total (A) 83,058,000 91.51%
Promoters Group
1 Devendra Kumar Jain 5,391,300 5.94%
2 Lata Rungta 760,840 0.84%
3 Manju Jain 919,840 1.01%
  Total (B) 7,071,980 7.79%
  All Total (A+B) 90,129,980 99.30%

Source: DRHP

S.No. Name of the Selling Shareholder No. of Equity Shares held % of pre-Offer Shareholding
1 Siddharth Jain 41,416,060 45.63%
2 Pavan Kumar Jain 19,903,090 21.93%
3 Nayantara Jain 19,267,250 21.23%
4 Ishita Jain 2,471,600 2.72%
5 Manju Jain 919,840 1.01%
6 Lata Rungta 760,840 0.84%
7 Bharti Shah 53,320 0.06%
8 Kumud Gangwal 53,340 0.06%
9 Suman Ajmera 53,340 0.06%
10 Rajni Mohatta 53,320 0.06%
  Total 84,952,000 93.60%
       

Source: DRHP

Why Invest in Inox India IPO?

To invest in the Inox India IPO, you need to consider various factors like analyzing the fundamentals of the company. You can check its strength and future plans with the types of risks in IPOs and associated with the company while operating its business. In respect of the same, we brought here points showing the strengths and risks, that you can consider while investing in the Inox India IPO.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Strengths:

  • In the year 2021, the global cryogenic equipment market was valued at $11.2 billion and global cryogenic equipment demand is expected to grow at a 6.8% CAGR from CY2022 to reach $16.4 billion by CY2027.
  • Similarly, the demand for cleaner fuels such as LNG  and hydrogen due to the focus on reducing carbon emissions from conventional energy sources will drive the uptake of cryogenic equipment across geographies. The company is going to capitalize on opportunities in LNG and hydrogen as part of the global clean energy transition.
  • Inox India IPO is one of the leading manufacturers of cryogenic tanks and cryogenic equipment in the world by revenue. In FY22, it was the largest supplier of cryogenic equipment in India with four times the sales of the second largest player in the domestic market.
  • The company exports to more than 64 countries and is ranked the largest exporter of cryogenic tanks from India. And being involved in designing and manufacturing the equipment as per the international norms. It is well poised to capitalize on global opportunities in cryogenic equipment and systems.
  • Inox India has a well-diversified customer base from corporate and government sectors across industries and geographies such as energy, LNG and  LCNG,  industrial gases,  steel,  medical and healthcare,  pharmaceuticals, aviation and aerospace, chemicals and fertilizers,  pharmaceuticals and construction, amongst others.
  • The company has had strong relationships for five years with five of our top ten customers and eight of our top twenty customers. Its long-term relationships and ongoing active engagements with customers also allow the company to plan its capital expenditure, and enhance its ability to benefit from increasing economies of scale with stronger purchasing power for raw materials and a lower cost base.
  • The company is backed by Experienced Promoters,a Management Team and a Skilled Workforce that will help it achieve its targets and execute future growth plans successfully and efficiently.
  • Further company is looking to gain market leadership positions across the entire value chain of our product lines by expanding its product portfolio to include a fully integrated product presence in each major segment.
  • The company has aimed to expand its market penetration across geographies of its standard equipment offering by becoming an approved equipment provider to additional large multinational corporations for industrial gases and LNG requirements.
  • It is also aiming to engage the third-party distributors who may be dealing with target industries where we are less experienced and setting up regional service centres on its own or through partnerships, acquiring companies in related businesses with common customer bases.
  • To expand its operations, apart from establishing a new facility to manufacture standard equipment including storage tanks, transport tanks, microbulk tanks and stainless-steel metal containers,the company is looking for strategic acquisition targets in India and internationally to expand our regional reach, product development and manufacturing assets.
  • As of March 2023, the company has an order book of Rs 1003.15 crore comprising anticipated revenues from the unexecuted portions of existing contracts from various business divisions. Out of this order book 50% is for Industrial Gas, 36% and 14% for LNG and Cryo Scientific.
  • At the Financial end, the revenue of the company grew at a CAGR of 27.54% between FY21 to FY23. While EBITDA and PAT during the same period grew at CAGR of 21.96% and 26.06% respectively. The company has maintained its operating and net profit margins in the last three years. Currently, its EBITDA margin stands at 23.05% and its PAT margin running at 15.81% in FY23 making Inox India a financially good growing company.

Also Read: Types of Risks Associated with Investing in the Stock Market

Risks:

  • The offers cryogenic equipment in India and internationally, but in the global cryogenic equipment segment there is also competition from various key players such as Air Liquide Inc., Linde Plc, Chart Industries, Inc., Air Products and Chemicals, Inc., Emerson Electric Co., Shijiazhuang Enric Gas Equipment Company  and Taylor-Wharton.
  • Maintaining a high standard of quality in our manufacturing, installation, operation and maintenance activities is another challenging factor for the positive growth and success of the company.
  • The principal raw materials of the company are available from multiple sources of supply, and any kind of shortages and delays to certain materials (Just like during the COVID-19 pandemic) affect the production of the company which will be directly reflected in the revenue and net earnings of the company.
  • The success of the business of Inox India is significantly dependent on our supply chain management. However, the company has not entered into long-term supply contracts with any of its raw material suppliers and typically sources raw materials from third-party suppliers under contracts of shorter periods or the open market. Any kind of disruptions from the supplier's side will also affect its business growth.
  • As the company is involved in industrial production and utilizing the natural resources at a large scale, hence dedicated to sustaining strong health, safety and environmental protection standards and is committed to maintaining a code of ethics and transparency as per the regulatory authorities norms. Any kind of violation or business practice against environmental protection could be subject to penalties and restrictions imposed by the government authorities can affect its business growth.
  • The operations of the company are subject to risks inherent as a cryogenic equipment manufacturer, which include defects, liability for product and/or property damage, malfunctions and failures of manufacturing equipment, fire, explosions, loss-in-transit for our products, accidents, personal injury or death, environmental pollution and natural disasters.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Inox India IPO Grey Market Premium

The Grey Market Premium (GMP) of Inox India IPO is running at Rs 330, which means the issue price is Rs 660 and the stock is likely to list at around Rs 990. However, it might fluctuate till the date of listing of shares. The GMP is a premium over the issue price that is defined according to the supply of shares and demand of the shares and as per the sentiments of the investors and traders in the grey market.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable

However, the GMP is not a dependable source to know the assured listing price of any share as it can keep changing as per the demand for the shares and sentiments in the secondary market. However, you can use the GMP to guess the expected listing price.

Inox India IPO Review & Analysis

The Inox India IPO was launched at Rs 660 (upper band) which is 330 times the face value of the equity shares. While, based on diluted EPS for the financial year 2023 the price-to-earnings (P/E)ratiofor the company at the cap price is 39.22 times, and the floor price is 37.25 times. The issue is priced at a P/BV of xx based on its NAV of Rs. 61.06 as of Sep 30, 2023.

Though, while considering its financial growth rate if you consider the FY24 annualized earnings to its post-IPO fully diluted paid-up equity capital, then the asking price is at a P/E of 29. However, as per the DRHP document, the company has no listed peers to compare if you evaluate the share price of the Inox India IPO, it is fairly priced. So, you can apply the issue with listing gain or invest in the company from the long-term investment point of view.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

How to Apply for Inox India IPO?

To apply for an Inox India IPO or any other company’s IPO, you need two accounts a trading account and a demat account. If you don't have anyone of both of them, apply here to open both these accounts with Moneysukh. Moneysukh is one the best discount broker in India providing the one-stop trading and investing solution in equity, commodity and currency market. To apply the Inox India IPO you can follow the steps given below.

Steps to Apply for Inox India IPO:

Step 1: You can apply for the Inox India IPO through online trading platforms.

Step 2:Here you need to open trade.moneysukh.com and log in with your User ID & password.

Step 3:Now navigate through and find the IPO section and select the Inox India IPO.

Step 4: Now you have to fill in the various details like price, quantity, and so on.

Note: At the time of applying in any IPO, bid at the cutoff price before submitting your application. 

Step 5: Now make the payment online as per your selected lot size and submit successfully.

How to Check Inox India IPO Allotment Status?

The allotment status will help you to know if you have been allocated any shares in the IPO. If you have subscribed and now want to check Inox India's IPO allotment status you can use the various online sources using your PAN card and IPO application details.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

You can check the allotment status only when the bidding is ended and allotment is done. The allotment process for retail is organized according to the subscription of bidding, if the IPO is oversubscribed, then there is less chance you will get the allotments of shares.

Also Read: How to Increase the Chances of IPO Allotment

Depending on the IPO application oversubscription in various categories, investors get the allocation of shares. If you have not allocated any shares in the IPO, your money will be returned back into your bank account or the IPO amount will be unblocked if applied through ASBA. If you are lucky enough to get the allotment, the shares will be transferred into your demat account before listing that you can sell to book profit on the date of or after the day of listing.

Also Read: What is Profit Booking in Stock Market: Rules & Best Strategy

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