IPO listed on 21 Dec'23
Inox India Ltd
Minimum Investment
₹ 14,520 / 22 shares
Grey market premium
₹ 445 (67% premium)
Issue price
₹ 660
Listing price
₹ 933
% since launch
Listing on
Dec 21, 2023
Our Verdict:
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- Inox India holds a prominent position in the cryogenic equipment sector with strong potential for global market expansion, thanks to its in-house technology. The firm has shown impressive performance over the past three years, marked by significant revenue and profit growth.
- With a price-to-earnings (PE) ratio of 39x, the pricing of the issue appears reasonable, given the firm’s sound financials and strong growth potential. The grey market also indicates a potential for a premium listing.
- Considering the firm’s dominant position in the Indian cryogenic equipment market, a robust order book, comprehensive product offerings and solid financial standing, it is advisable for investors to subscribe to this issue from a medium-to-long term perspective.
About the company
Founded in
21 Dec'76
Managing director
Pavan Kumar Jain
- Inox India Ltd stands as India's largest supplier of cryogenic equipment and the largest exporter of cryogenic tanks from the country in terms of revenue. The firm boasts over three decades of expertise in delivering comprehensive solutions that encompass design, engineering, manufacturing, and the installation of equipment and systems tailored for cryogenic environments.
- Their portfolio includes a variety of products and services, such as standard cryogenic tanks and equipment, custom-built beverage kegs, and specialized technology and solutions. They also undertake extensive turnkey projects. These offerings cater to a wide range of industries including industrial gases, liquified natural gas (LNG), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction. Furthermore, the firm is known for producing cryogenic equipment that plays a pivotal role in global scientific research initiatives.
STRENGTHS
- Leading Market Position: In FY23, Inox India was the largest supplier of cryogenic equipment in India by revenue. It offers a broad range of high-quality, specialized cryogenic equipment.
- Impressive Financial Track Record: The firm demonstrated notable growth from FY21 to FY23, achieving a compound annual growth rate (CAGR) of 28% in revenue, 23% in EBITDA, and 22% in net profit.
- Strong Margins: The firm maintained an EBITDA margin of 22.6% and a profit after tax (PAT) margin of 15.5% in FY23, improving to 25.13% and 17.82%, respectively, in the first half of FY24.
- Outstanding Returns: In FY23, the firm achieved a remarkable Return on Equity of 28% and a Return on Capital Employed of 37%.
- Investor-Friendly Company: The firm declared dividends of 75% in FY22, 550% in FY23, and continued at 550% in FY24 up until now.
RISK FACTORS
- Revenue Concentration: In FY23, a significant portion of the firm’s operational revenue, amounting to 11.56% and 46.52%, was generated from its largest and top ten customers, respectively. Any cancellation, delay, or decrease in orders from these customers could significantly harm our business, operational results, and financial stability.
- Foreign Exchange Risk: A substantial part of the revenue is earned in foreign currencies, primarily the US Dollar and the Euro. In FY23, exports constituted 45.8% of the operational revenue, and 18.5% of the raw materials were imported. This exposure to foreign currency fluctuations poses a risk to the firm’s operational results, as both revenue and expenses are affected by currency exchange rates.
- Contingent Liabilities: Contingent liabilities accounted for ~20% of the total income in FY23, rising to ~29% as of September 2023. A full or unexpectedly high realization of these liabilities could severely impact the firm’s business, operational results, and financial health.
Issue details
Issue type
Mainstream
Issue size
₹ 1,459.32 crore
Fresh Issue
₹ -
OFS
₹ 1,459.32 crore
Price range
₹ 627 - 660
Lot size
22 shares
Issue Objective
This issue is a pure Offer for Sale (OFS), which means the company will not receive any proceeds from the offer. All the offer proceeds will be received by the selling shareholders, in proportion to the shares sold by them.
Dates
Bidding open
14 Dec'23
Bidding close
18 Dec'23
Allotment date
19 Dec'23
Refund date
20 Dec'23
Listing
21 Dec'23
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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