What GMP signals ahead of issue launch on Thursday

The initial public offering (IPO) of Inox India Limited (Inox India) will open for subscription on Thursday, December 14. Ahead of the issue opening, the company’s shares are trading at a premium of ₹336, up from ₹262 a few days ago.

The cryogenic storage tanks manufacturer will sell its shares in the range of ₹627-660. Investors can make an application for the issue for a minimum of 22 shares and in multiples thereafter.

At the upper end of the price band, the company plans to raise ₹1,459.32 crore from the public offer.

About 50% of the issue has been reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.

Under the OFS, Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, Ishita Jain, Manju Jain, Lata Rungta, among others, will offload shares.

Since there is no fresh issue segment in the IPO, the company will not receive any proceeds and all the funds will go to the selling shareholders.

Competition

Inox India compete to provide their cryogenic equipment in India and internationally. Their competition includes cryogenic equipment manufacturers in one or all of their business segments, some of which are divisions of diversified business groups.

The key players in the global cryogenic equipment segment include Air Liquide Inc., Linde Plc, Chart Industries, Inc., Air Products and Chemicals, Inc., Emerson Electric Co., Shijiazhuang Enric Gas Equipment Company Ltd and Taylor-Wharton.

The company competes primarily on the basis of their design, engineering, and manufacturing capabilities, on-time delivery, customer service security of supply (quality, regulatory compliance and financial stability) and cost- effective products and solutions.

Company profile

The part of Inox Group, Inox India is the largest supplier of cryogenic equipment in India by revenue in Fiscal 2023. Inox India has over 30 years of experience offering solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions.

Also, they were the largest exporter of cryogenic tanks from India in terms of revenue in Fiscal 2023.

On the financial front, the company has reported a 17% year-on-year growth in net profit at ₹152.7 crore for the year ended March FY23, and revenue during the same period rose by 23.4% to ₹966 crore.

Its net profit in the six-month period ended September FY24 grew 24% to ₹103 crore and revenue surged 16% over the last year to ₹564.6 crore.

ICICI Securities, and Axis Capital are the book running lead managers to the issue, while KFin Technologies is the registrar.

The share allotment for the IPO will likely be done on December 19 and the shares of Inox India will list on the BSE and NSE date within three days of IPO closing.