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22 January 2024

Inox CVA IPO: Fueling Growth in Cryogenic Solutions

Introduction:

Inox CVA, a significant player in the cryogenic equipment sector, recently introduced its IPO, showcasing an impressive Offer for Sale amounting to Rs 1,459.32 crores. This blog provides a detailed overview of the Inox CVA IPO, covering key details, subscription insights, and the company's standing in the cryogenic industry.

Key Dates:

Bidding Period	Allotment Date	Listing Date
December 14 to December 18, 2023	December 19, 2023	December 21, 2023

IPO Highlights:

Issue Size	Offer for Sale	Price Band	Lot Size	Minimum Investment
Rs 1,459.32 Crores	22,110,955 shares	Rs 627 to Rs 660 per share	22 Shares	Rs 14,520 for retail investors

Financial Overview:

Total Issue Size	Shareholding Pre-Issue	Shareholding Post-Issue
22,110,955 shares, aggregating up to Rs 1,459.32 Crores	90,763,500 shares	To be calculated based on the Offer for Sale

Shareholding Structure:

Pre-Issue Shares	Post-Issue Shares
100%	74.97%

IPO Management:

Lead Manager	Registrar
ICICI Securities Limited and Axis Capital Limited	Kfin Technologies Limited

Subscription Highlights:

The Inox CVA IPO garnered significant attention from investors, with a robust subscription rate of 61.28 times. The Retail Individual Investors (RII), Non-Institutional Investors (NII), and Qualified Institutional Buyers (QIB) actively participated in the subscription process.

IPO Journey Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Refunds Initiation	Shares Credited to Demat	Listing Date
December 14, 2023	December 18, 2023	December 19, 2023	December 20, 2023	December 20, 2023	December 21, 2023

Market Maker Segment:

Prabhat Financial Services	193,000 shares

Lot Size Details:

Investors had the flexibility to bid for a minimum of 22 shares, with various investment parameters for retail investors and High Net Worth Individuals (HNIs).

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 (Max)	68	1,496	Rs 987,360
B-HNI (Min)	69	1,518	Rs 1,001,880

Inox CVA IPO Reservation:

The IPO featured a reservation of 22,110,955 shares, strategically allocated to different investor categories, including Anchor Investors, Retail Individual Investors (RII), Non-Institutional Investors (NII), and Qualified Institutional Buyers (QIB).

About Inox India Limited:

Established in 1976, Inox India Limited specializes in the manufacturing and supply of cryogenic equipment. The company operates across three divisions: Industrial Gas, LNG, and Cryo Scientific, offering solutions for the storage, distribution, and transportation of industrial gases, LNG, and scientific cryogenic applications.

Key Financial Indicators:

As of September 30, 2023, Inox India Limited showcased impressive financial figures:

Metric	Values
Assets	Rs 1,155.81 Crores
Revenue	Rs 580.00 Crores
Profit After Tax	Rs 103.34 Crores
Net Worth	Rs 554.24 Crores

Key Performance Indicators:

- Market Capitalization: Rs 5,990.39 Crores
- Return on Equity (ROE): 27.79%
- Return on Capital Employed (ROCE): 36.53%
- Return on Net Worth (RoNW): 27.79%

Objects of the Issue:

The Inox CVA IPO aims to:

- Carry out the Offer for Sale of up to 22,110,955 Equity Shares by the Selling Shareholders.
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges, enhancing visibility and brand image.

Conclusion:

Inox CVA's IPO marks a significant stride in the cryogenic solutions sector, drawing attention from a wide spectrum of investors. With a robust financial performance and a diversified product portfolio, Inox India Limited positions itself as a key player in the cryogenic industry. As the company explores new avenues and expands its reach, investors may find this IPO an exciting opportunity to participate in the growth of a niche player with strong fundamentals and a proven track record in delivering cryogenic excellence.

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