Inox India LTD IPO: Review, Date, Valuation & Today GMP

Inox India Limited IPO - Complete Overview

Established in December 1976, Inox India Limited specializes in supplying cryogenic equipment. The company offers comprehensive solutions for equipment operating in extreme cold conditions, covering everything from design and engineering to manufacturing and installation. Its diverse range of products and services includes cryogenic tanks, beverage kegs, customized technology, equipment solutions, and complete turnkey projects. These offerings serve various industries, such as industrial gases, liquefied natural gas (LNG), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction.

In terms of manufacturing, the company operates facilities in Kalol, Kandla Special Economic Zone (Kandla SEZ), and Silvassa in the Union Territory of Dadra and Nagar Haveli. As of September 2023, the company's order book stands at ₹10,366.09 million.

As of September 2023, the company has exported products and provided services to 66 countries, including the United States, Saudi Arabia, the Netherlands, Brazil, Korea, the United Arab Emirates, Australia, and Bangladesh.

Inox India Limited IPO Overview

Inox India Limited's IPO date is slated to be open for subscription from December 14, 2023, to December 18, 2023. This BSE NSE IPO follows a Book Built Issue IPO.

The Inox India Limited IPO price is fixed at Rs. 627 to Rs. 660  per share. The upcoming BSE NSE IPO will be listed on December 21, 2023.

The total issue size of this IPO amounts to Rs.1,459.32 CR. Within this total issue, 35% is issued to retail investors, and 15% is issued to other investors.

 

 

Inox India Limited IPO Timetable (Tentative)

Events	Date
IPO Opening Date	14 December 2023
IPO Closing Date	18 December 2023
IPO Allotment Date	19 December 2023
Refund initiation	20 December 2023
IPO Listing Date	21 December 2023

 

Inox India Limited IPO Details

IPO opening & closing date	14 December to 18 December 2023
Face value	Rs. 2 per share
Issue Price	Rs. 627 to Rs. 660 per share
Lot Size	22  Shares
Price of 1 lot	Rs. 14,520
Total Issue Size	22,110,955 shares of Rs. 2 (aggregating up to Rs. 1,459.32 Cr)
Offer for sale	22,110,955 shares of Rs. 2 (aggregating up to Rs. 1,459.32 Cr)
Fresh issue	shares (aggregating up to Rs. Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

 

 

Inox India Limited IPO Lot Details

 

Inox India Limited IPO  Reservation

Company Financial

As of September 30, FY 23, the company's financials include total assets of Rs. 1,155.81 Crore, total revenue of Rs. 580.00 Crore, PAT of Rs. 103.34 Crore, net worth of Rs. 554.24 Crore, and total borrowings of Rs. 31.03 Crore.

(Amount in Crore)

Period	Sep 30  FY 23	FY 23	FY 22
Total Assets	1,155.81	1,148.36	896.75
Total Revenue	580.00	984.20	803.71
PAT	103.34	152.71	130.50
Net worth	554.24	549.48	502.28
Total Borrowings	31.03	-	43.38

 

Revenue-Distribution  Geographical  Wise

As of September 30, FY 23, the company's revenue mix highlights a diverse geographical distribution. The United States and Antigua and Barbuda each contribute 12.24%, with 5.11% from Saudi Arabia and 1.70% from Japan. Norway makes a minor 0.04% contribution, while 32.61% comes from exports to other regions. The total global revenue distribution is 62.18%, reflecting a notable increase from FY 22's 45.83%.

( in % age)

Particulars	Sep 30 F.Y. 23	F.Y. 23	F.Y. 22
United States	12.24%	15.89%	11.52%
Antigua and Barbuda	12.24%	4.11%	-
Saudi Arabia	5.11%	2.85%	2.17%
Japan	1.70%	2.53%	1.07%
Norway	0.04%	3.46%
Export to Others	32.61	17.00%	19.52%
Total	62.18%	45.83%	34.29%

 

Revenue-Distribution Divison Wise    

In FY 23, Industrial Gas comprises 64.00% of revenue, down from 70.88% in FY 22, while LNG increases to 30.53% from 24.89%. Cryo Scientific maintains a share of 5.47%. This contrasts with FY 21, where Industrial Gas led with 79.29%, LNG contributed 16.08%, and Cryo Scientific held 4.63%.

( % age) 

Division	F.Y. 23	F.Y 22	F.Y 21
Industrial Gas	64.00%	70.88 %	79.29%
LNG	30.53%	24.89 %	16.08%
Cryo Scientific	5.47%	4.23%	4.63%
Total	100.00%	100.00%	100.00%

 

Revenue By Operations

In FY 23, revenue from operations is Rs. 5,646.12 million, with other income at Rs. 153.83 million, totaling Rs. 5,799.95 million. This contrasts with FY 22, where revenue from operations reached Rs. 7,827.11 million, and other income was Rs. 210.02 million, resulting in a total of Rs. 8,037.13 million.      

(amount in INR Millions)

Particulars	Sep 30 FY 23	FY 23	FY 22
Revenue from operations	5,646.12	9,659.00	7,827.11
Other Income	153.83	182.99	210.02
Total	5,799.95	9,841.99	8,037.13

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

1. Carry out the Offer for Sale of up to 22,110,955 Equity Shares by the Selling Shareholders.

2. Achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, our Company expects that the proposed listing of its Equity Shares will enhance our visibility and brand image as well as provide a public market for Equity Shares in India. The Selling Shareholders will be entitled to the entire proceeds of the Offer after deducting the Offer expenses and relevant taxes there on.

 

Promoters and Management of Inox India Limited IPO

1. Pavan Kumar Jain

2. Nayantara Jain

3. Siddharth Jain 

4. Ishita Jain

Pre-issue Promoter Shareholding	99.30%
Post-issue Promoter Shareholding	75.46%

 

Inox India Limited IPO Lead Managers

• ICICI Securities Limited

• Axis Capital Limited

 

Key Performance of Inox India Limited IPO

KPI	Values
P/E (x)	39.22
EPS (Rs)	16.83
ROE	27.79%
ROCE	36.53%
RoNW	27.79%

 

 

IPO's Valuations

To evaluate the IPO's valuation, we can utilize the information presented in the company's DRHP and RHP. Inox India Limited's IPO is fixed at Rs. 627 to Rs. 660 per share, with an EPS of Rs.16.83. The company's P/E ratio is calculated at 39.21 based on the issue price.

 

Dividend Policy

The company's dividend policy, adopted in July 2022, involves evaluating financial factors. No dividends were paid for the six months ending September 30, 2023. In fiscal years ending March 2023 and March 2022, dividends were paid, including a special dividend in March 2023 (Rs.11 per share, totaling Rs.998.40 million), a final dividend in March 2022 (Rs.11 per share, totaling Rs.998.40 million), and an interim dividend in March 2022 (Rs.0.50 per share, totaling Rs.45.38 million). The document highlights that past dividends don't guarantee future payments.

 

IPO's Strengths

• Established track record in supplying cryogenic equipment.

• Diverse product range and global presence.

• Robust financial foundation, with solid total assets and revenue.

• Strong international focus, evident from widespread geographical and division-wise revenue distribution.

 

IPO's Weaknesses

• Unclear fund utilization details.

• Concentration risk in revenue sources.

• Lack of innovation strategy discussion.

• Relatively high IPO valuation without detailed peer comparison.

 

IPO GMP Today

The latest Grey Market Premium (GMP) for Inox India IPO stands at Rs. 485.

Conclusion

In conclusion, Inox India Limited's IPO highlights a strong company in the cryogenic equipment sector with global reach. The financials are solid, and the reasonable P/E ratio of 39.22 adds to its appeal. The international focus and balanced revenue distribution contribute to its resilience. While strengths and weaknesses are outlined, the Grey Market Premium at Rs. 175 offers additional perspective. Prospective investors should conduct thorough due diligence before making investment decisions.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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