INOX India IPO: The initial public offering (IPO) of INOX India Limited opened for subscription on 14th December 2023 and it will remain open till 18th December 2023. This means, investors have just one day in hand to apply for the IPO as bidding for the public issue is ending on Monday next week. The cryogenic equipment maker and supplier company has fixed INOX India IPO price band at ₹627 to ₹660 per equity share. After two days of bidding, the public issue has been subscribed 7.14 times.
Meanwhile, after two days of strong subscription, grey market has gone further bullish on the public issue. According to stock market observers, shares of the company are available at a premium of ₹535 per equity share, which is ₹205 higher from its Thursday GMP of ₹330.
As per the market observers, INOX India IPO grey market premium (GMP) today is ₹535, which is ₹205 higher from its Thursday GMP of ₹330. They said that strong response by investors and bull trend on Dalal Steet has further boosted the grey market sentiments in regard to INOX India shares. They said that grey market is signaling that investors may get around 80 per cent listing gain from the public offer.
However, stock market experts maintained that GMP is not an ideal indicator about possible listing gain assessment. They said that grey market is non regulated and completely speculative as it has no connect with balance sheet of the company.
In first two days of bidding, the public issue has been subscribed 7.14 times whereas its retail portion has been subscribed 8.17 times. The NII portion of the public offer has been subscribed 13.75 times.
On INOX India IPO review, BP Equities said, “As there is a global push to reduce carbon footprint and promote the use of clean source of energy such as LNG and hydrogen, Inox India Ltd. is expected to benefit from the long-term demand for cryogenic equipment. The company’s leadership position in cryogenic equipment in India, robust order book, strong product portfolio, marquee clients diversified across sectors and focus on exports should help the company to grow its scale of operations in future. Additionally, the company has delivered healthy financial performance in the past, focused on reduced borrowings and posted strong RoE and RoCE in excess of 25%, thereby providing confidence about its sustained business performance.”
The brokerage has given buy tag to the IPO citing, ” The company has a track record of sustained Revenue/EBITDA/ PAT performance which grew at a CAGR of 27.5%/21.9%/26.0% during the FY2021-23 period. On the upper price band, the issue is valued at a P/E of 39.2x based on FY2023 earnings which we feel is fairly valued. We, therefore, recommend a “Subscribe” rating for the issue.”
Giving ‘subscribe’ tag to INOX India IPO, Rajan Shinde, Research Analyst at Mehta Equities said, “We believe Inox India Ltd gives investors an opportunity to invest in a prominent provider of cryogenic equipment in the specialized and technologically intensive cryogenic equipment industry. We think as a leading Indian supplier and exporter of cryogenic equipment and solutions with 30 years of industry experience with a recognized brand INOXCVA and a reputation for consistent quality products, company is poised to capitalize on the increasing global demand for cryogenic storage tanks and equipment within its well-established customer base. By looking at the financials the company has shown a strong growth between fiscal 2022 and 2023 with a 31.81%/23.40% in revenue from operations and 35.8%/17% in net profit. On Valuation parse at upper price band of Rs.660/-, the issue is asking for a Market Cap of Rs. 5990 Cr.”
Shinde went on to add, “Based on annualized FY24 earnings and fully diluted post-IPO paid-up capital, the company is asking a P/E of 28.98x which seems the valuations are fully priced by looking at the revenue and profit growth. Investors should also look at IPO offers which come with 100% OFS i.e Rs.1459/- cr issue which is an area of concern for new investors, but due to the company’s strategic position in niche market with global footprint and commitment to innovations may command higher valuation multiple. Given Inox India’s robust foundation in product development, coupled with a focus on quality and customization, sets the stage for continued success in the evolving cryogenic equipment landscape. Hence, we recommend investors to “Subscribe” the IPO with listing gain perspective only.”
INOX India IPO detials
In the wake of T+3 listing, INOX India IPO listing date is most likely on 21st December 2023 i.e. on Thursday next week. Hence, investors can expect INOX India IPO allotment date on 19th December 2023 i.e. on Tuesday next week.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 16 Dec 2023, 02:00 PM IST
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