Inox India Limited is coming up with an IPO worth INR 1459.32 crores. This consists of an offer to sell INR 2.21 crore existing equity shares. The company will not receive any proceeds from the offer but intends to provide liquidity to the existing shareholders and help build the brand image.
Inox India Limited IPO – Important Details
| Inox India IPO Date | December 14, 2023 to December 18, 2023 |
| Inox India IPO Listing Date | December 21, 2023 |
| Inox India IPO Price | INR 627 to INR 660 per share |
| Inox India IPO Lot Size | 22 Shares |
| Inox India IPO Total Issue Size | INR 1,459.32 crores |
| Inox India IPO Basis of Allotment | December 19, 2023 |
| Inox India IPO Initiation of Refunds | December 20, 2023 |
| Inox India IPO Credit of Shares to Demat | December 20, 2023 |
| Inox India IPO Issue Type | Book Built Issue IPO |
| Inox India IPO Listing At | BSE,NSE |
Inox India Ltd IPO – Company Profile
Inox India Limited is a leading cryogenic equipment manufacturer with over 30 years of experience, specializing in designing, engineering, and installing standard and bespoke cryogenic tanks for various industries. They are a significant exporter from India, serving industrial gases, LNG, green hydrogen, energy, aerospace, and scientific research.
They anticipate a global surge in cryogenic equipment demand, driven by the push for cleaner fuels like LNG and hydrogen to reduce carbon emissions. They are poised to capitalize on this market growth with their in-house technology and comprehensive LNG product range. Additionally, their engineering teams are innovating in hydrogen storage, transportation, and distribution to meet the demand for large-scale liquid hydrogen movements.
Their business comprises three divisions: Industrial Gas, offering cryogenic tanks for storing and distributing industrial gases; LNG, providing equipment for LNG storage and distribution; and Cryo Scientific, delivering technology-intensive solutions for scientific and industrial cryogenic distribution research.
Inox India Limited IPO – Fundamental Analysis
Inox India Ltd’s IPO reflects promising financials, showing consistent revenue growth, improved profitability, reduced debt, and enhanced shareholder value. Further analysis aids investment decision-making in this offering.
Revenue Growth:
The company has shown consistent revenue growth, increasing from ₹5,937.97 million in 2021 to ₹9,659.00 million in 2023, indicating a positive sales trajectory.
Profitability:
Profit after tax has also seen a steady rise, climbing from ₹961.07 million in 2021 to ₹1,527.14 million in 2023, showcasing improved operational efficiency and profitability.
Return on Net Worth (RoNW):
The Return on Net Worth has experienced a gradual increase from 25.87% in 2021 to 27.79% in 2023, indicating better profitability in relation to shareholders’ equity.
Earnings Per Share (EPS):
The Diluted EPS has shown an upward trend, growing from ₹10.59 in 2021 to ₹16.83 in 2023, reflecting increased earnings per share for investors.
Net Asset Value (NAV) per Equity Share:
The NAV per equity share has consistently risen, going from ₹40.93 in 2021 to ₹60.54 in 2023, indicating an enhanced asset value per share.
Debt Equity Ratio:
The company has showcased a decreasing trend in its Debt Equity Ratio, reducing from 0.18 times in 2021 to 0.02 times in 2023, indicating a strong reduction in debt and improved financial health.
Inventory Turnover Ratio:
Although the inventory turnover ratio has shown a slight decline, the figures remain within a reasonable range, indicating the company’s ability to manage inventory efficiently.
Current Ratio:
The current ratio has remained relatively stable over the years, depicting the company’s capability to cover short-term liabilities with its current assets.
Inox India Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue(₹in millions) | 5,937.97 | 7,827.11 | 9,659.00 |
| Equity(₹ in millions) | 3,715.14 | 5,022.84 | 5,494.76 |
| Expenses (₹in millions) | 4,779.27 | 6,295.06 | 7,791.50 |
| Profit and Loss After Tax (₹ in millions) | 961.07 | 1,304.98 | 1,527.14 |
| RoNW (%) | 25.87 | 25.98 | 27.79 |
| Diluted EPS only (₹) | 10.59 | 14.38 | 16.83 |
| NAV per Equity Share (₹) | 40.93 | 55.34 | 60.54 |
| Total Assets (in millions) | 6,872.00 | 8,967.53 | 11,483.64 |
| Total Liabilities (in millions) | 3,156.86 | 3,944.69 | 5,988.89 |
| Debt Equity Ratio | 0.18 times | 0.11 times | 0.02 times |
| Inventory Turnover Ratio | 3.87 times | 3.34 times | 2.63 times |
| Current Ratio | 1.77 times | 1.99 times | 1.67 times |
Inox India Limited IPO Peer Comparison
There are no listed companies in India that engage in a business similar to that of Inox India Limited. Accordingly, it is impossible to provide an industry comparison of them. Further, there are no Indian or global-listed peers who are of comparable size, from the same industry, and with a similar business model.
Inox India Ltd IPO Objective
Inox India Limited’s IPO offer consists of an offer for sale, and the company will not receive any funds from the proceeds of the offer. The company aims to achieve the benefits of listing and enhance the visibility and the brand image.
Inox India Limited IPO Risks and Challenges
Inox India operates manufacturing facilities in Gujarat and Silvassa, facing operational, safety, and environmental risks. Geographic-specific challenges include regulatory issues, labor unrest, and security concerns. Potential cryogen leakage poses health hazards, liability risks, and adverse effects on business and financial conditions.
- Inox India Limited operates three manufacturing facilities in Gujarat and Silvassa, facing operational risks such as equipment breakdowns, accidents, and natural disasters. Heavy machinery and hazardous processes pose safety and environmental concerns, potentially disrupting operations, incurring costs, and leading to legal consequences.
- Operating in Gujarat and the Union Territory of Dadra and Nagar Haveli, the company faces geographic-specific risks, including regulatory challenges, labor unrest, terrorist attacks, violence, and the potential impact of natural and artificial disasters on its manufacturing facilities.
- Potential cryogen leakage from equipment poses health hazards and may lead to warranty claims, product recalls, and liability issues. These challenges could adversely affect the company’s business, financial condition, and operational results.
- Inox India aims for growth through LNG and hydrogen opportunities, global expansion, operational efficiency, and strategic alliances. Success hinges on effective risk management, market dynamics, and sustained demand for clean energy amid evolving technologies and emissions standards.
- The company’s product demand is tied to cyclical capital and maintenance spending in hydrocarbon and industrial gas markets. Economic downturns and uncertainties in customer expenditures may significantly impact their business, results, and financial condition.
Inox India IPO – Industry & Market Potential
Industrial gases, including nitrogen, oxygen, and natural gas, find application across diverse industries. These gases primarily drive cryogenic equipment demand. Cryogenic gases, derived from atmospheric air or energy gases like natural gas and hydrogen, undergo liquefaction for industrial use. Safety regulations govern their handling and usage.
Hydrogen, viewed as a versatile green energy source, is gaining interest, mainly green hydrogen produced through electrolysis from renewable sources. Blue hydrogen, produced from non-renewable sources with carbon capture, offers environmental benefits. Emerging applications, like fuel cells in transportation and energy industries, are gaining traction globally to reduce carbon emissions.
The global transportation industry, a significant carbon emitter, is witnessing a shift toward sustainability with the rise of electric vehicles and cleaner fuels like natural gas. This transition represents essential industry and market potential driven by environmental concerns and emission reduction initiatives.
Inox India Ltd IPO – Type of Offer
Inox India Limited is coming up with an offer to sell 2.21 crore existing shares. Along with the other shareholders, the below are the details of the promoters selling their existing shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale |
| Siddharth Jain | 10,437,355 |
| Pavan Kumar Jain | 5,000,000 |
| Nayantara Jain | 5,000,000 |
| Ishita Jain | 1,200,000 |
Inox India Ltd IPO Offer Size
Inox India Limited is set to launch an Initial Public Offering (IPO) valued at INR 1459.32 crores. The IPO entails the sale of 2.21 crore existing equity shares, with the company not expected to receive any funds from this offering. The primary purpose is to enhance liquidity for current shareholders and contribute to strengthening the company’s brand reputation.
Inox India IPO Allotment Structure
Inox India Limited IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for an Inox India Ltd IPO?
To apply for the Inox India IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for Inox India IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Inox India IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Inox India Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1.Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2.Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3.Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4.Select the Inox India Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Inox India IPO.
5.Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Inox India Limited IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Inox India Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Inox India Limited IPO Offer Registrar
The registrar for the Inox India Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information of the registrar:
KFin Technologies Limited
Selenium, Tower-B, Plot 31 & 32, Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032
Telangana, India
Tel: +91 40 6716 2222 / 1800 309 4001
E-mail: [email protected]
Website: www.kfintech.com
Inox India Limited IPO FAQs
The allotment date is December 19, 2023.
The price band of the shares is INR 627-660 per share.
Inox India Limited is set to launch an Initial Public Offering (IPO) valued at INR 1459.32 crores, comprising the sale of 2.21 crore existing equity shares. While the company won’t directly benefit from the proceeds, the primary goal is to enhance liquidity for current shareholders and bolster the company’s brand reputation.
The listing date is December 21, 2023.
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