INOX India (INOXCVA), one of the country’s leading cryogenic tank makers, has set the price band for its upcoming initial public offering (IPO) at ₹627-660 per share, which will open for subscription between December 14-18. At the upper end of the price band, the company looks to raise ₹1,459.32 crore through the public issue.
The IPO of INOX India will open a day after the launch of public offerings of DOMS Industries and India Shelter Finance Corporation on December 13. The anchor book of the offer will open for a day on December 13. The shares of the company are likely to be listed on December 21.
The public issue of INOX India is completely an offer for sale (OFS) by promoters and existing shareholders, so the company will not get any funds from the IPO. Under the OFS, the company’s promoters Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, and Ishita Jain will offload their stake in the company. Among others, Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta will also pare their shareholding via the OFS.
The lot size for the IPO is 22 equity shares and in multiples of 22 shares thereafter. This means, retail investors can apply for a minimum of 22 shares, or 1 lot, for ₹14,520, and a maximum of 286 shares, or 13 lots, for ₹1,88,760, as they cannot exceed ₹2 lakh limit.
The company has reserved half of the issue for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and remaining 35% for retail investors.
Established in December 1976, INOX India is one of the largest manufacturers of cryogenic storage, re-gas and distribution systems for LNG, industrial gases and cryo-scientific applications with operations in India, Brazil & Europe. The company has an extensive user base, spread across more than 100 countries and is serviced by a network of after-sales support associates in 25 countries. It is leading India’s efforts to use LNG for industrial and automotive use. The company’s key strength lies in design engineering, manufacturing, supply and commissioning of cryogenic turnkey packaged systems.
On the financial front, INOX India reported 23.9% year-on-year (YoY) rise in net profit to ₹103.3 crore in the six-month period ended September FY24. The revenue climbed 16% over the last year to ₹564.6 crore in H1 FY24.
For the financial year ended March 31, 2023, the company posted a 17% YoY growth in net profit at ₹152.7 crore, and revenue increased by 23.4% to ₹966 crore.
According to the CRISIL report, the global cryogenic equipment market was valued at $11.5 billion in calendar year 2022. Global cryogenic equipment demand recorded a CAGR of 2.6% between calendar year 2017 and calendar year 2022, while it dipped during the Covid-19 period of calendar years 2020 and 2021, declining at a CAGR of 1.2% between calendar years 2019 and 2021, as economic activity slowed down. However, in calendar year 2022, demand surpassed pre-Covid-19 levels marginally.
The global cryogenic equipment demand is projected to grow at a compound annual growth rate (CAGR) of 6.9% from calendar year 2023 to calendar year 2028, as per the report. Demand for cleaner fuels, such as LNG and hydrogen, as a result of the aim to reduce carbon emissions from conventional energy sources, will drive the uptake of cryogenic equipment across geographies. Additionally, the increase in industrialisation in developing nations in Asia Pacific is expected to boost demand for industrial gases in segment such as electronics, space and satellite and, in turn, increase demand for cryogenic equipment, the report noted.
ICICI Securities, and Axis Capital are the book running lead managers to the issue, while Kfin Technologies Limited is the registrar for the issue.
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