Unprecedented Investor Enthusiasm
The Inox India IPO, valued at Rs 1,459.32 crore, witnessed an overwhelming response on its last day of bidding. A significant surge in interest, notably from retail and non-institutional investors (NIIs), marked the closing chapter of this financial event. The IPO saw a 2.79 times subscription on day one and an impressive 7.07 times by the end of day two.
Impressive Figures
The price band for the IPO was set at Rs 627-660, with a lot size of 22 equity shares. Inox India, based in Gujarat, offered a three-day bidding window, concluding on Monday, December 18. The offering comprised an offer-for-sale of up to 22,110,955 equity shares.
Retail and NII Participation
According to available data, investors submitted bids for 21,15,32,222 equity shares, reflecting a substantial oversubscription of 13.67 times. Retail investors subscribed 11.18 times, while non-institutional investors surpassed with a 31.10 times subscription. Qualified institutional bidders (QIBs) showcased interest, with bids reaching 4.94 times simultaneously.
About Inox India IPO
Established in 1976, Inox India has emerged as a key player in supplying cryogenic equipment, primarily focusing on tanks. The company provides comprehensive solutions, covering the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions.
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Robust Financial Performance
Inox India, a leading global company and India’s largest manufacturer of complex cryogenic solutions sustains EBITDA margins above 21% and consistently outperforms the listed capital goods sector with an ROCE exceeding 30%.
Market Positioning
In the unofficial market, Inox India commanded a premium of Rs 535-555 per share, indicating a potential upside of 82-85 percent compared to the upper end of the price band. The company’s prominence in manufacturing critical cryogenic solutions positions it favorably for future growth.
Listing Gains Anticipation
Green fuels like liquid hydrogen gaining importance and the preference for LNG over diesel will drive robust topline growth for Inox. Analysts suggest potential listing gains, supporting their outlook with a ‘subscribe’ rating for the issue.
Strategic Fundraising
INOX India secured Rs 437.8 crore from anchor investors, allocating 50 percent to qualified institutional bidders (QIBs), 15 percent to non-institutional investors, and the remaining 35 percent to retail investors. Inox CVA, a leading supplier of cryogenic equipment, anticipates benefiting from the expanding global and domestic cryogenic equipment market.
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Expert Recommendations
Analysts recommend subscribing to the issue, considering the company’s dominant market position, potential capacity utilization improvement, and the growing significance of hydrogen as a preferred future fuel.
IPO Details and Listing
ICICI Securities and Axis Capital serve as the book-running lead managers for the InoxCVA IPO, with Kfin Technologies acting as the registrar for the issue. The eagerly awaited listing is scheduled on both BSE and NSE on Thursday, December 21. Investors eagerly anticipate Inox India’s listing, eager to witness its success story in the financial landscape.
Frequently Asked Questions (FAQ’s)
Ans: The Inox India IPO refers to the initial public offering conducted by Inox India, a leading provider of cryogenic equipment. The IPO aimed to raise Rs 1,459.32 crore through the sale of equity shares.
Ans: Investors showed remarkable enthusiasm during the three-day bidding process. The issue was oversubscribed 7.07 times by the end of the final day, with substantial interest from retail and non-institutional investors.
Ans: INOX India allocated 50 percent of the offer to qualified institutional bidders (QIBs), 15 percent to non-institutional investors, and the remaining 35 percent to retail investors.
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