INOX India Limited is launching its IPO. The IPO opens for subscription on 14th December and will close on 18th December 2023.
What does INOX India Limited do?
Industrial gases, including nitrogen, oxygen, and natural gas, are used in various industries and produced through air separation units (ASUs) that filter and cool atmospheric air. Cryogenic equipment, such as tanks, valves, vaporizers, and pumps, is used to store, transport, and handle these gases in liquid form. Cryogenic gases can be converted to their gaseous form for use in industries such as steel, glass, and hospitals.
The cryogenic industry is divided into four major groups:
- Raw material manufacturers
- Gas suppliers
- Cryogenic equipment manufacturers, and end-users.
Inox India Limited is one such prominent manufacturer of cryogenic equipment, it was one of the leading cryogenic tank manufacturers in the world by revenues in 2021 and was the largest exporter of cryogenic tanks from India in terms of revenue in fiscal 2022.
They offer standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment, and solutions, as well as large turnkey projects that are used in diverse industries such as industrial gases, liquified natural gas (“LNG”), green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction.
Their business comprises three divisions:
- Industrial Gas: This division manufactures, supplies, and installs cryogenic tanks and systems for storage, transportation, and distribution of industrial gases such as green hydrogen, oxygen, nitrogen, argon, carbon dioxide (CO2), and hydrogen and provides after-sales services.
- LNG: This division manufactures, supplies, and installs standard and engineered equipment for LNG storage, distribution, and transportation as well as small-scale LNG infrastructure solutions suitable for industrial, marine, and automotive applications.
- Cryo Scientific: This division provides equipment for technology-intensive applications and turnkey solutions for scientific and industrial research involving cryogenic distribution.
Some of their major customers include:
- Hyundai Engineering and Construction Co Ltd
- IRM Energy Ltd
- Saint Gobain India Private Ltd
- Shell Energy India Private Ltd
- ISRO
Financial information and other valuation metrics
| Particulars | As of March 31, 2023 | As of March 31, 2022 | As of March 31, 2021 |
|---|---|---|---|
| Total Assets | 10.207 | 10.901 | 8.842 |
| Total revenue | 58.894 | 21.943 | 12.023 |
| Net Cash inflow / (outflow) | 5.767 | (0.878) | 0.939 |
| Profit after taxes | 152.714 | 130.498 | 96.107 |
| EBITDA | 222.651 | 188.631 | 149.698 |
Risk factors to consider:
This being the first public issue of the company, there has been no formal market for the equity shares of the company.
No assurance can be given regarding active and/or sustained trading in the Equity Shares nor regarding the price at which they will be traded after listing.
The business is dependent and will continue to depend on manufacturing facilities, and are subject to certain risks in the manufacturing process such as breakdown or failure of equipment, industrial accidents, severe weather conditions, and natural disasters.
They are dependent on and derive a substantial portion of their revenue from a limited number of customers. Cancellations by customers or delays or reductions in their orders could have a material adverse effect on the business, results of operations, and financial condition.
Cryogen leakage from equipment poses health hazards, and they may be exposed to potential warranty claims, product recalls and returns, and product liability claims, which could adversely affect the business, results of operations, and financial condition.
Schedule of INOX India Limited IPO
| Issue Period | 14th December to 18th December 2023 |
|---|---|
| Price band | ₹ 627 to 660 |
| Minimum Bid quantity | 22 & Multiples thereof |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | December 19, 2023 |
| Initiation of Refunds | December 20, 2023 |
| Credit of Shares | December 20, 2023 |
| Date of Listing | December 21, 2023 |
| Mandate end date | January 02, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | January 18, 2024 |
| Anchor Investors Lock-In End Date (Remaining investment) | March 18, 2024 |
How to apply to the INOX India Limited IPO?
You can apply for the INOX India Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for INOX India Limited IPO?
You can check the allotment status for the INOX India Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.