Inox India IPO Review – GMP, Pricing, Details & More

Inox India IPO Review: Inox India Limited is preparing for an initial public offering (IPO). The IPO will open for subscription on December 14, 2023 and will close on December 18, 2023. In this article, we look at Inox India IPO Review 2023 and analyze its strengths and weaknesses. Read on to find out!

Inox India IPO – About Us

Inox India Limited is a cryogenic equipment supplier established in December 1976. Covering design, engineering, manufacturing and installation, we provide complete solutions for equipment and systems operating in cryogenic conditions.

In addition to cryogenic tanks and equipment, the company offers a variety of products and services. This includes beverage kegs, bespoke technology, equipment and solutions as well as comprehensive turnkey projects.

The wide range of products and services offered by Inox India Limited are suitable for various industries. These industries include industrial gases, liquefied natural gas (“LNG”), green hydrogen, energy, steel, healthcare and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction.

Business segmentation

The company’s business consists of three segments: Our business segments and activities for each segment are as follows.

• Industrial gases: This division produces, supplies, and installs cryogenic tanks and systems for the storage, transportation, and distribution of industrial gases such as green hydrogen, nitrogen, argon, oxygen, carbon dioxide (CO2), and hydrogen, and provides after-sales service.
• Liquefied natural gas: In this division, the company produces, supplies and installs standard and engineered equipment for LNG storage, distribution and transportation, as well as small-scale LNG infrastructure solutions suitable for marine, industrial and automotive applications.
• Cryo Scientific: In this division, the company provides equipment for technology-intensive applications and turnkey solutions for industrial and scientific research related to cryogenic distribution.

The company’s main customers

The following image shows INOX India Limited’s key customer base across its three business segments:

Inox India IPO Review – Industry Insights

According to a CRISIL report, India’s cryogenic equipment market is estimated to be worth $353 billion in 2022. Demand for such equipment in India has been growing at a steady compound annual growth rate (CAGR) of 6.8% between 2017 and 2017. And 2019.

Going forward, the demand for cryogenic equipment in India is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2028.

This growth is expected to be fueled by increased industrial production, investments in the electronics and space sectors, and the shift to cleaner fuel sources such as hydrogen and LNG in the industrial and transportation sectors.

Inox India IPO Review – Financial Highlights

If we look at the financials of Inox India Limited, we can see that its assets have increased from Rs.687.20 crores in March 2021 to Rs.1,155.81 crores in September 2023.

Their revenue also follows a similar trend, increasing from Rs.608.99 crores in March 2021 to Rs.984.20 crores in March 2023. Their profit increased from Rs.96.11 crores in March 2021 to Rs.152.71 crores in March 2023. This means that the company maintained a margin of 16.87% of its sales.

As of Q2 FY24, the company reported total revenue of Rs.580.00 crores and net profit of Rs. for six months. 103.34 crores.

For the year, the company reported ROE of 22.57% and ROCE of 17.38%. This means that the company has generated good returns on shareholder capital and has utilized its resources efficiently.

Key players in the market

There is no listed company in India carrying on business similar to the company in question. Moreover, there is no other Indian or global listed company of comparable size operating in the same industry and similar business model as the company.

Company Strengths

• As of FY23, the company is India’s largest cryogenic equipment supplier in terms of revenue. The company also became the largest exporter of cryogenic tanks from India in terms of revenue in FY23.
• We have developed and commercialized products and services across the entire cryogenic value chain, including industrial gases, LNG liquefaction plants, and liquefied hydrogen.
• The company has a diverse customer base across industry sectors and geographies. As of FY23, we have provided equipment and systems to more than 1,201 domestic customers and 228 international customers.
• The company has an in-house engineering team to develop new products and solutions. This allows us to develop products and systems tailored to specific customer needs.
• The company believes that its promoters, management and dedicated team provide a strong competitive advantage for growth in current and new markets.

company’s weaknesses

• The company generates 11.56% and 46.52% of its revenue from its largest and top 10 customers, respectively, as of FY23. Reducing or canceling orders from these customers could have a serious impact on your business.
• Increases in the cost of raw materials or other input costs could negatively affect the pricing and supply of the Company’s products, which could have a negative impact on our business.
• The Company is exposed to geographical and regulatory risks due to its facilities located in Gujarat and the Union Territories of Dadra and Nagar Haveli.
• Exports account for a major portion of the company’s revenue (45.83% in FY23). A slowdown in exports due to tariffs, trade barriers, and international sanctions could have a negative impact on our business.
• The company relies on multiple suppliers for key parts, materials and inventory, as well as customer support services, including product repair and returns. If any of these suppliers are unable to provide their services, our business could be adversely affected.

Inox India IPO Review – GMP

Shares of Inox India Limited were trading at a premium of 36.36% in the gray market on December 11, 2023. The stock was lagging at Rs 900. This gives a premium of Rs 240 per share to the ceiling price of Rs 660.

Key IPO Information

promoter: Pavan Kumar Jain, Nayantara Jain, Siddharth Jain, Ishita Jain

Book Operations Lead Manager: ICICI Securities Limited and Axis Capital Limited

Proposal registered by: KFin Technology Limited

purpose of the problem

The company will not receive any proceeds from the IPO as the entire issue is through an offer for sale.

Finishing

In this article, we have looked at the details of Inox India IPO Review 2023. Given that the company will be the first publicly traded company in the industry, adding to its strong presence in domestic and international markets, the company’s outlook appears favorable for the future.

What do you think the future holds for your company? Applying for an IPO? Let us know in the comments below.

Written by Aaron Barth

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