Inox India Limited IPO (Inox CVA IPO)

Indian stock market are eagerly eyeing the Inox India Limited IPO, also known as the Inox CVA IPO. This book-built issue, valued at Rs 1,459.32 crores, presents a prime chance to tap into the potential of 2.21 crore shares offered exclusively through this IPO.

The subscription window for the Inox CVA IPO opens on December 14, 2023, and closes on December 18, 2023, creating a limited timeframe for investors to secure their positions. The anticipated allotment date, December 19, 2023, adds to the urgency. This IPO is poised to make its debut on both BSE and NSE, with a scheduled listing date of December 21, 2023.

Priced competitively at Rs. 627 to Rs. 660 per share, the Inox CVA IPO caters to investors with varying risk appetites. The minimum lot size is 22 shares, requiring a modest investment of Rs. 14,520 for retail investors. Seasoned investors, categorized as sNII and bNII, can invest with minimum lot sizes of 308 shares and 1,518 shares, amounting to Rs. 203,280 and Rs. 1,001,880, respectively.

Steering this IPO are prestigious book running lead managers ICICI Securities Limited and Axis Capital Limited, with Kfin Technologies Limited acting as the registrar for the issue. Detailed insights into the Inox CVA IPO can be found in the Red Herring Prospectus (RHP), guiding investors toward informed decisions. Seize this opportunity to participate in the growth trajectory of Inox India Limited, a potential game-changer in the market.

Inox CVA IPO Details

IPO Date	December 14, 2023 to December 18, 2023
Face Value	₹2 per share
Price Band	₹627 to ₹660 per share
Lot Size	22 Shares
Total Issue Size	22,110,955 shares (aggregating up to ₹1,459.32 Cr)
Offer for Sale	22,110,955 shares of ₹2 (aggregating up to ₹1,459.32 Cr)
Issue Type	Book Built Issue IPO
Listing At	BSE, NSE
Share holding pre issue	90,763,500

As the Inox CVA IPO gears up for its subscription window from December 14, 2023, to December 18, 2023, investors are eagerly anticipating its listing date. Priced between Rs. 627 to Rs. 660 per share and with a face value of Rs. 2 per share, this book-built issue presents a unique opportunity for investors looking to diversify their portfolios.

The lot size of 22 shares ensures accessibility for retail investors, with the total issue size comprising 22,110,955 shares, aggregating up to Rs. 1,459.32 Cr. Notably, the entire issue is an offer for sale, making it imperative for investors to grasp the dynamics of this transaction.

Scheduled to list on both BSE and NSE, the Inox CVA IPO is poised to make waves in the stock market. The shareholding pre-issue stands at 90,763,500 shares, indicating a strategic move towards expansion and growth.

Inox CVA IPO Timeline (Tentative Schedule)

The Inox CVA IPO, scheduled to open its subscription window on December 14, 2023, and conclude on December 18, 2023, unveils a meticulously planned timeline, offering investors a transparent view of critical milestones.

IPO Open Date: Thursday, December 14, 2023

IPO Close Date: Monday, December 18, 2023

Basis of Allotment: Tuesday, December 19, 2023

Initiation of Refunds: Wednesday, December 20, 2023

Credit of Shares to Demat: Wednesday, December 20, 2023

Listing Date: Thursday, December 21, 2023

Investors are reminded of the crucial cut-off time for UPI mandate confirmation at 5 PM on December 18, 2023. Timely confirmation is paramount for a seamless and efficient participation process.

This well-coordinated schedule not only reflects the commitment to transparency but also ensures that investors are well-prepared for each phase of the IPO journey. As you consider your investment strategy, aligning with these dates can optimize your participation in the Inox CVA IPO, contributing to a strategic and well-executed investment plan. Stay attuned to these dates to maximize your investment potential and leverage the opportunities presented by this dynamic IPO.

Inox CVA IPO Lot Size

As the Inox CVA IPO beckons, investors must fine-tune their investment strategies to align with their risk appetite and financial goals. The table below delineates the minimum and maximum investment thresholds for retail investors and High Net Worth Individuals (HNI), offering a comprehensive guide for strategic decision-making.

Application	Lots	Shares	Amount
Retail (Min)	1	22	₹14,520
Retail (Max)	13	286	₹188,760
S-HNI (Min)	14	308	₹203,280
S-HNI (Max)	68	1,496	₹987,360
B-HNI (Min)	69	1,518	₹1,001,880

Grey Market Premium (GMP) Inox CVA IPO

Investors tracking the Inox India IPO are greeted with promising updates as of December 14, 2023, 11:28 AM. The last Grey Market Premium (GMP) stands at Rs. 445, signaling positive momentum. With a price band of Rs. 660.00, the estimated listing price for Inox India IPO is projected at Rs. 1105 (cap price + today’s GMP), presenting an anticipated percentage gain/loss per share of 67.42%.

Further insights reveal Retail Subject to Sauda at Rs. 7400

Small HNI Subject to Sauda at Rs. 103600, indicating robust interest in the market.

Daily GMP updates, based on the last 5 sessions of grey market activities, showcase an upward trend, forecasting a strong listing. While the lowest GMP is Rs. 0, the highest reaches Rs. 445, underlining the dynamic nature of market sentiment.

Inox India Day-wise IPO GMP Trend

GMP Date	IPO Price	GMP	Sub2 Sauda Rate	Estimated Listing Price	Last Updated
14-12-2023 Open	660.00	₹445	7400/103600	₹1105 (67.42%)	14-Dec-2023 11:28
13-12-2023	660.00	₹445 Up	7400/103600	₹1105 (67.42%)	13-Dec-2023 23:32
12-12-2023	660.00	₹330 Up	5500/77000	₹990 (50%)	12-Dec-2023 23:29
11-12-2023	660.00	₹262 Up	4400/61600	₹922 (39.7%)	11-Dec-2023 23:30
10-12-2023		₹0	—	₹ (0%)	10-Dec-2023 21:32

IPO grey market premium (GMP)

The Grey Market Premium (GMP) serves as an unofficial indicator of an IPO’s potential performance prior to its official listing. This unregulated market reflects the anticipated trading price of an IPO and provides insights into how the market might respond on the listing day. A positive GMP indicates an expected profit scenario, while a negative GMP suggests a likely discount.

It’s crucial to emphasize that IPO GMP is characterized by extreme volatility. Relying solely on Inox India IPO GMP for investment decisions can pose significant risks. Investors should exercise caution and consider a holistic approach, taking into account various factors before making investment decisions related to the Inox India IPO.

The dynamic nature of the grey market underscores the importance of thorough research and analysis. Investors are advised to assess all relevant factors, including the company’s fundamentals, market conditions, and overall economic trends, to make well-informed investment decisions. While GMP provides valuable insights, it should be one of many considerations in the broader investment strategy.

Inox CVA IPO Promoter Holding

Share Holding Pre Issue	99.30%
Share Holding Post Issue	75.46%

Inox India Limited’s promoters, namely Pavan Kumar Jain, Nayantara Jain, Siddharth Jain, and Ishita Jain, play a pivotal role in the company’s leadership. As of the pre-issue stage, the promoters collectively hold a substantial 99.30% of the company’s shares, underscoring their strong commitment and belief in the organization.

However, with the forthcoming IPO, there is a strategic shift in shareholding dynamics. Post-issue, the promoters’ stake is expected to decrease to 75.46%, reflecting the infusion of fresh capital from external investors. This change signifies a broader participation in the company, potentially fostering increased liquidity and diversified ownership.

Investors considering participation in the Inox India IPO should take note of these shareholding details. While the promoters maintain a significant stake, the dilution post-issue opens doors for new investors to become part of the company’s growth journey. Understanding these dynamics is essential for those seeking a nuanced perspective on the company’s ownership structure and its implications for future growth and performance.

Key Performance Indicator

Investors delving into the Inox CVA IPO are presented with key performance indicators (KPIs) that illuminate the company’s financial health and market standing.

Market Cap: Rs 5990.39 Cr

P/E (x): 39.22

Post P/E (x): 29

ROE (Return on Equity): 27.79%

ROCE (Return on Capital Employed): 36.53%

EPS (Earnings Per Share): Rs 16.83

RoNW (Return on Net Worth): 27.79%

The P/E ratio of 39.22 reflects the market’s expectation of future earnings growth, with a Post P/E of 29 providing a glimpse into the company’s valuation after the IPO. The robust ROE and ROCE at 27.79% and 36.53%, respectively, underline the company’s efficiency in generating returns for shareholders. A healthy EPS of Rs. 16.83 signifies strong earnings per share.

Inox India Limited Profile

Inox India Limited: Pioneering Cryogenic Solutions Since 1976

Founded in 1976, Inox India Limited stands as a stalwart in the manufacturing and supply of cryogenic equipment. The company’s diverse business activities are encapsulated within three dynamic divisions:

Industrial Gas: Inox India excels in designing, manufacturing, and installing cryogenic tanks and systems for the storage, transportation, and distribution of industrial gases, including cutting-edge applications like green hydrogen and oxygen.

LNG (Liquefied Natural Gas): The LNG division showcases Inox India’s prowess in developing, manufacturing, and installing both standard and engineered equipment for LNG storage, distribution, and transportation. Additionally, it offers small-scale LNG infrastructure solutions for industrial, marine, and automotive applications.

Cryo Scientific: This division specializes in providing equipment and turnkey solutions for scientific and industrial research in the realm of cryogenic distribution, focusing on technology-intensive applications.

Inox India’s extensive product portfolio spans standard cryogenic tanks and equipment, beverage kegs, bespoke technology, and large-scale turnkey projects. These cater to a myriad of industries, including industrial gases, LNG, green hydrogen, energy, steel, medical, healthcare, chemicals, fertilizers, aviation, aerospace, pharmaceuticals, and construction.

In the six months leading to September 30, 2023, and the financial years 2023, 2022, and 2021, the company served 1,255 domestic and 254 international customers across its three business segments. Key clientele features industry leaders such as Air Liquide Global E&C Solutions India Private Limited, Caribbean LNG Inc, 2G Energy Inc, ISRO, and Hyundai Engineering and Construction Co Ltd.

As of September 2023, Inox India has successfully exported products and services to 66 countries, spanning the United States, Saudi Arabia, the Netherlands, Brazil, Korea, the United Arab Emirates, Australia, and Bangladesh. The company’s state-of-the-art manufacturing facilities are strategically located in Kalol, Kandla Special Economic Zone (Kandla SEZ), and Silvassa in the Union Territory of Dādra and Nagar Haveli.

The robustness of Inox India’s operations is further evidenced by its impressive order book, standing at Rs. 10,366.09 million as of September 2023. As the company continues to push the boundaries of cryogenic innovation, it remains a key player in shaping the landscape of industries relying on advanced technology and solutions.

Inox India Limited Financial Growth: A Steady Ascend

Inox India Limited’s financial performance reflects a resilient trajectory, marked by substantial growth in revenue and profit after tax (PAT). The restated consolidated figures for the financial years ending March 31, 2023, and March 31, 2022, reveal a commendable upward trend.

Period Ended	30 Sep 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets (₹ Cr.)	1,155.81	1,148.36	896.75	687.20
Revenue (₹ Cr.)	580.00	984.20	803.71	608.99
Profit After Tax	103.34	152.71	130.50	96.11
Net Worth (₹ Cr.)	554.24	549.48	502.28	371.51
Total Borrowing	31.03	–	43.38	60.37

The consistent increase in revenue by 22.46% and PAT by 17.02% between March 31, 2023, and March 31, 2022, underscores Inox India Limited’s adept management and strategic positioning in the market.

The balance sheet exhibits a parallel growth in total assets, reflecting the company’s expanding operations and robust financial health. Net worth has progressively increased, indicating a strengthened financial position and enhanced shareholder value.

In terms of borrowings, there is a notable decrease from March 31, 2022, to September 30, 2023, highlighting a prudent approach to financial management.

In summary, Inox India Limited’s financial performance showcases resilience and strategic acumen, positioning the company favorably for sustained growth in the evolving market landscape.

Inox CVA IPO Subscription: Robust Retail Participation

The Inox CVA IPO subscription status, as of December 14, 2023, 12:13:00 PM, reveals a subscription rate of 0.75 times. While the Qualified Institutions category did not witness any subscriptions, the Retail and Non-Institutional Buyers (NII) categories demonstrated notable participation.

Anchor Investors: Subscribed 1 time, involving 66,33,285 shares, amounting to Rs 437.80 Cr.

Qualified Institutions: Not subscribed, with 44,22,191 shares offered and 19,470 shares bid for, totaling Rs 1.29 Cr.

Non-Institutional Buyers: Subscribed 0.86 times, incorporating bids for 28,39,628 shares out of 33,16,644 offered, accumulating to Rs 187.42 Cr.

bNII (bids above Rs. 10L): Subscribed at 0.68 times, with bids for 15,10,894 shares out of 22,11,096 offered, totaling Rs 99.72 Cr.

sNII (bids below Rs. 10L): Subscribed at 1.20 times, with bids for 13,28,734 shares out of 11,05,548 offered, amounting to Rs 87.70 Cr.

Retail Investors: Subscribed 1.12 times, displaying robust interest with bids for 86,81,310 shares out of 77,38,835 offered, reaching Rs 572.97 Cr.

Total IPO Subscription: 0.75 times

Total Shares Offered: 1,54,77,670

Total Shares Bid For: 1,15,40,408

Total Amount: Rs 761.67 Cr.

With a substantial total application count of 288,461, the Inox CVA IPO has generated significant investor interest. The robust subscription in the Retail category is indicative of retail investors’ confidence, contributing to the overall positive sentiment surrounding the IPO.

Inox CVA IPO Objectives: Focused Offer for Growth

The primary objectives of the Inox CVA IPO are meticulously outlined to serve specific purposes aimed at fostering the company’s growth and enhancing its market presence.

Offer for Sale (OFS): The IPO facilitates the Offer for Sale of up to 22,110,955 Equity Shares by the Selling Shareholders. This avenue allows existing shareholders to divest a portion of their holdings, offering liquidity and a strategic exit strategy.

Listing Benefits: The issuance of Equity Shares is intricately tied to the goal of achieving the benefits associated with listing on the Stock Exchanges. By becoming a publicly traded entity, Inox CVA anticipates heightened visibility and an enhanced brand image. The public market for Equity Shares in India provides an avenue for investors to participate in the company’s growth.

Enhanced Visibility and Brand Image: The proposed listing is strategically aligned with the aim of boosting visibility and building a robust brand image for Inox CVA. Publicly traded companies often experience increased recognition and credibility in the market, contributing to long-term sustainability and growth.

Providing a Public Market: The listing of Equity Shares not only benefits the company but also caters to the market demand for accessible and tradable shares. It creates a public market for Inox CVA’s Equity Shares in India, opening opportunities for a diverse range of investors to participate in the company’s journey.

Proceeds to Selling Shareholders: The Selling Shareholders will be entitled to the entire Offer proceeds, post the deduction of Offer expenses and relevant taxes. This mechanism ensures that the sellers receive the intended value for their divestment.

In summary, the Inox CVA IPO is strategically structured to balance the interests of existing shareholders, offer growth opportunities through the stock market listing, and enhance the overall market presence and reputation of Inox CVA in the Indian financial landscape.