INOX India Limited IPO 2023: Date, Lot Size & Price
Founded in 1976, Inox India Limited is a leading cryogenic equipment manufacturer with three divisions:
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Industrial Gas Division: Designs and installs cryogenic tanks for industrial gases, including green hydrogen and oxygen.
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LNG Division: Specializes in manufacturing equipment for LNG storage, distribution, and transportation, including small-scale solutions.
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The Cryo Scientific Division: provides cryogenic equipment and turnkey solutions for scientific and industrial research.
Their product range includes standard cryogenic tanks, beverage kegs, bespoke technology, and large turnkey projects across industries like industrial gases, LNG, green hydrogen, and more. In the six months ending September 2023, the company served 1,255 domestic and 254 international customers, exporting to 66 countries. Major clients include Air Liquide, Caribbean LNG, ISRO, and Hyundai. Manufacturing facilities are in Kalol, Kandla SEZ, and Silvassa, with an order book of Rs. 10,366.09 million as of September 2023.
Inox India Limited-Journey
The company's journey began as "Baroda Oxygen Limited," incorporated as a public limited company under the Companies Act, 1956, in Gujarat. The certificate of incorporation was granted on December 21, 1976, by the RoC, and the business commenced on April 18, 1979. Later, on March 23, 1987,
The company underwent a name change to "INOX India Limited" with a new certificate of incorporation issued by the RoC. Subsequently, it transformed into a private limited company and adopted the name "INOX India Private Limited" on May 22, 2015.
In a subsequent evolution, the company reverted to its original name, "INOX India Limited," upon re-conversion into a public limited company. This change was enacted through a resolution passed by the board on May 23, 2022, and approved by the shareholders on June 15, 2022. The RoC issued a fresh certificate of incorporation on July 14, 2022, marking the company's re-conversion to a public limited entity.
Cryogenic Equipment Industry in India
In the calendar year 2021, the Indian cryogenic equipment market was estimated to be valued at US$340 billion. Between the years 2016 and 2019, there was a consistent compound annual growth rate (CAGR) of 6.5% in the demand for cryogenic equipment in India. However, the subsequent two years, from 2019 to 2021, witnessed a stall in demand growth due to lockdowns and travel restrictions caused by the COVID-19 pandemic.
Looking ahead, the CRISIL Report anticipates a resurgence in demand, projecting a CAGR of 7.1% between the calendar years 2022 and 2027. This growth is attributed to various factors, such as an upswing in industrial output, increased investments in the electronics and space sectors, and a shift towards cleaner fuel sources like LNG and hydrogen in both industrial and transport domains.
Factors governing the Cryogenic Equipment Industry in India
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There is an increased need for cryogenic gases in the metallurgy sector.
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An expected rise in demand with the global economic recovery.
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Increased demand due to the transition to lower-carbon fuels, especially LNG.
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Focus on decarbonization and sustainable processes in the chemicals industry, contributing to growth.
Inox India Limited IPO Details
The Inox CVA IPO, valued at Rs 1,459.32 crores, is an offer for the sale of 2.21 crore shares. Subscription opens on December 14, 2023, and closes on December 18, 2023, with allotment expected on December 19, 2023. The IPO is set to list on the BSE and NSE on December 21, 2023.
The Inox India Limited IPO share price band is Rs 627 to Rs 660 per share, and the minimum lot size is 22 shares. Retail investors require a minimum investment of Rs 14,520. For sNII, the minimum lot size is 14 lots (308 shares) with an investment of Rs 203,280, and for bNII, it is 69 lots (1,518 shares) with an investment of Rs 1,001,880.
Purpose of Inox India Limited IPO Issue
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Conduct an offer for the sale of up to 22,110,955 equity shares by selling shareholders.
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Realize the advantages of listing shares on stock exchanges.
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Anticipate enhanced visibility and brand image through the listing.
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Provide liquidity to shareholders.
Inox India Limited IPO Issue Key Dates:
|
Event |
Date |
|
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 |
|
The credit of Shares to Demat |
Wednesday, December 20, 2023 |
|
Listing Date |
Thursday, December 21, 2023 |
|
Cut-off time for UPI mandate confirmation |
5 PM on December 18, 2023 |
|
Event |
Details |
|
IPO Date |
December 14, 2023, to December 18, 2023 |
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Listing Date |
Thursday, December 21, 2023 |
|
Face Value |
Rs 2 per share |
|
Inox India Ltd IPO Price Band |
Rs 627 to Rs 660 per share |
|
Lot Size |
22 Shares |
|
Total Issue Size |
22,110,955 shares (aggregating up to Rs 1,459.32 crore) |
|
Offer for Sale |
22,110,955 shares of Rs 2 (aggregating up to Rs 1,459.32 Crore) |
|
Issue Type |
Book Built Issue IPO |
|
Listing At |
BSE, NSE |
|
Shareholding pre-issue |
90,763,500 |
Inox India Limited IPO Issue Lot Size
|
Application |
Lots |
Shares |
Amount |
|
Retail (Min) |
1 |
22 |
Rs 14,520 |
|
Retail (Max) |
13 |
286 |
Rs 188,760 |
|
S-HNI (Min) |
14 |
308 |
Rs 203,280 |
|
S-HNI (maximum) |
68 |
1,496 |
Rs 987,360 |
|
B-HNI (Min) |
69 |
1,518 |
Rs 1,001,880 |
Inox India Limited IPO Reservation
|
Investor Category |
Shares Offered |
|
QIB Shares Offered |
Not more than 50% of the Net Issue |
|
Retail Shares Offered |
Not less than 35% of the Net Issue |
|
NII (HNI) Shares Offered |
Not less than 15% of the Net Issue |
Inox India Limited Investment Potential:
Qualitative Factors:
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Prominent Indian supplier and exporter of cryogenic equipment
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An extensive range of specialized cryogenic equipment meets global quality standards
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Diverse customer base spanning domestic and international sectors
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Robust focus on product development and engineering
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Sound financial performance supports continued growth
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Experienced Promoters, Management Team, and skilled workforce
Quantitative Factors:
|
Basic and diluted earnings per share (“EPS”) |
|||
|
Fiscal/Period |
Basic EPS (in Rs) |
Diluted EPS (in Rs) |
Weight |
|
31-Mar-23 |
16.83 |
16.83 |
3 |
|
31-Mar-22 |
14.38 |
14.38 |
2 |
|
31-Mar-21 |
10.59 |
10.59 |
1 |
|
Weighted Average |
14.97 |
14.97 |
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Key Performance Indicator
|
KPI |
Values |
|
P/E (x) |
39.22 |
|
Market Cap (Rs. Cr.) |
5990.39 |
|
ROE |
27.79% |
|
ROCE |
36.53% |
|
EPS (Rs) |
16.83 |
|
RoNW |
27.79% |
Risk Factors:
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There is no assurance on active or sustained trading or the future share price after listing.
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Business heavily relies on manufacturing facilities, facing risks like equipment breakdown, industrial accidents, severe weather, and natural disasters in the manufacturing process.
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Substantial revenue comes from a limited customer base; cancellations, delays, or order reductions from key customers could adversely impact the business.
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Cryogen leakage poses health hazards, exposing the company to potential warranty claims, product recalls, returns, and product liability claims, impacting business, operations, and financial condition.
In conclusion, established in 1976, Inox India Limited is a leading player in cryogenic equipment. The company, with a strong international presence, serves diverse industries. The Inox India Limited IPO share price band is Rs 627 to Rs 660 per share, and the minimum lot size is 22 shares. With an IPO valued at Rs 1,459.32 crore, set to open on December 14, 2023, and list on December 21, 2023, on BSE and NSE, it marks a significant milestone.
In the competitive cryogenic market, Inox India's robust financials, diverse customer base, and strategic manufacturing facilities make it a compelling investment. As the industry anticipates a growth surge, the IPO not only reflects the company's evolution but also provides investors with an entry into a promising sector with global demand.
Frequently Asked Questions
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When is the subscription period for the Inox India Limited IPO?
The subscription period for the Inox India Limited IPO is from December 14, 2023, to December 18, 2023.
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What is the share price range for the Inox India Limited IPO?
The Inox India Limited IPO share price is set in the range of Rs. 627 to Rs. 660 per share.
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What is the minimum investment for retail investors in the Inox India Limited IPO?
Retail investors need a minimum application of 22 shares, requiring an investment of Rs. 14,520.
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How will Inox India Limited utilize the funds raised through the IPO?
The IPO funds will be utilized for various purposes, including conducting an offer for the sale of equity shares, achieving the benefits of listing on stock exchanges, enhancing visibility and brand image, providing liquidity to shareholders, and establishing a public market for equity shares in India.
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When is the listing date for Inox India Limited on BSE and NSE?
Inox India Limited is scheduled to be listed on the BSE and NSE on Thursday, December 21, 2023.
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Disclaimer: This blog is dedicated exclusively for educational purposes. Please note that the securities and investments mentioned here are provided for informative purposes only and should not be construed as recommendations. Kindly ensure thorough research prior to making any investment decisions. Participation in the securities market carries inherent risks, and it's important to carefully review all associated documents before committing to investments. Please be aware that the attainment of investment objectives is not guaranteed. It's important to note that the past performance of securities and instruments does not reliably predict future performance.
