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INOX India Limited Check Issue Size Date and Price Band

11 Jan 2024

Introduction:

The past few days have witnessed heightened activity in the Indian stock market. As the indices reach unprecedented highs and a flurry of Initial Public Offerings (IPOs) debut, it feels like a bustling carnival ahead of the New Year and Christmas. The Inox CVA IPO is among the notable IPOs hitting the D-street in the next few days. 

Belonging to a cryogenic equipment manufacturing company, the Inox CVA IPO aims to raise approximately Rs. 1,459 crores from public investors. It comprises an offer for sale (OFS) of 2.2 crore equity shares and will open for public subscription on Thursday, 14 December 2023. Keep reading to learn additional details concerning Inox CVA IPO, including price band, lot size, listing dates, and more, so that you can make an informed investment decision.

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About Inox CVA Limited

The issuing company, Inox CVA Limited, provides end-to-end solutions for cryogenic equipment and systems, including designing, engineering, manufacturing, and installation. The company has a diversified portfolio comprising many products and services, including cryogenic tanks and equipment, beverage kegs, customized technology, and comprehensive turnkey projects.

Inox CVA Limited caters to the requirements of various industries, including construction, pharmaceutical, aviation, aerospace, chemicals, fertilizers, healthcare, steel, energy, and industrial gases. The company offers its products and services in the domestic and international markets, comprising more than 66 countries worldwide. As of 30 September 2023, the company’s order book stood at Rs. 1,037 crores.

Key Strengths of the Company

Examining a company's strengths can provide valuable insights into its potential for growth, assisting you in making well-informed decisions when considering an investment in its IPO. The following are the key strengths of Inox CVA Limited, as outlined in the company's Red Herring Prospectus (RHP):

  • As per the FY23 CRISIL report, the company is the largest Indian supplier and exporter of cryogenic equipment and services
  • The company has a diversified product portfolio comprising a wide range of products and services
  • The company has received several certifications and accreditations for meeting global quality standards in cryogenic equipment manufacturing
  • Strategically poised to seize opportunities within the global transition towards clean energy, particularly in the fields of LNG and hydrogen
  • Has a well-diversified customer base across domestic and international markets in more than 66 countries
  • A strong and efficient internal engineering team to develop innovative products and services

Key Risks or Weaknesses

Analyzing the risks or vulnerabilities of the issuing company offers valuable insights into the potential challenges that could impede its long-term growth. Below are the key risks and weaknesses associated with Inox CVA Limited:

  • The company derives a major portion of its revenues from limited clients
  • The business is heavily focused on the Industrial Gas sector. The company needs to diversify into other verticals
  • The leakage of cryogen can cause significant health hazards and can bring substantial financial and legal troubles for the company
  • Profits and revenues are exposed to the risks associated with fluctuations in the foreign currency exchange rates

Core Financials of the Company

Inox CVA Limited has improved its net worth from Rs. 502 crores in FY22 to Rs. 549 crores in FY23. On the other hand, its borrowings have reduced to nil in the last completed financial year. The total revenue and profit for FY23 stood at Rs. 966 crores and Rs. 153 crores respectively.

For more details on the financials of Inox CVA Ltd., you can refer to the table below:

Particulars For the Period Ended Sept 2023 As of and for FY Ended March 31
2023 2022 2021
Share Capital 18 18 18 9
Net Worth 554 549 502 372
Total Borrowings 31 Nil 43 60
Revenue From Operations 565 966 783 594
EBITDA Adjusted 146 223 189 150
Profit After Tax 103 153 130 96
Earnings Per Share (Diluted) 11 17 14 11
Return on Equity 19% 28% 26% 26%

*Amount in Crores

Source – RHP dates 2 December on the SEBI website

Details of the IPO

Inox CVA IPO will comprise only an offer-for-sale component worth Rs. 1,459 crores. It opens for public subscription on Friday, 14 December 2023, and closes on Monday, 18 December 2023. The table below illustrates additional IPO details:

IPO Date 14 December to 18 December 2023
Basis of Allotment 19-Dec
Listing Date 21-Dec
Face Value Rs. 2 per share
Price Band Rs. 627 to Rs. 660
Lot Size 22 shares
Total Issue Size Rs. 1,459.32 crores
Offer for Sale Rs. 1,459.32 crores
Issue Type Book Built Issue
Listing At NSE, BSE

To conclude

Inox CVA IPO seems attractive for long-term profits or listing gains. However, you must consider your risk appetite, investment goals, and the issuing company’s fundamentals to make a well-informed investment decision.

 

Related Articles:  How to Analyse an IPO | What is IPO Grading? | What is Cut Off Price In IPO Application 

 

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