INOXCVA IPO: Key Details and Analysis
It’s IPO time again, and Inox India Ltd (INOXCVA) is all set to hit the market. With the buzz building around this offering, I’m diving into what makes it stand out. If you’re eyeing fresh opportunities in the primary market, you’ll want to stay tuned.
INOXCVA’s IPO is unique as it’s purely an offer for sale (OFS) by existing shareholders. I’ll be unpacking the details, from the 221.11 lakh shares on offer to the expected IPO size of ₹1459.32 crore at the upper price band. We’ll explore what this means for the company and you as a potential investor.
INOXCVA IPO Details
As I delve into INOXCVA’s IPO, it’s essential for potential investors to grasp the specifics of this public offering. INOXCVA, a notable player in the cryogenic equipment manufacturing sector, has set its IPO date from December 14 to December 18, 2023. Let me break down the details for those keen on capitalizing on opportunities in the primary market.
| IPO Date | December 14, 2023 to December 18, 2023 |
|---|---|
| Face Value | ₹2 per share |
| Price Band | ₹627 to ₹660 per share |
| Lot Size | 22 Shares |
| Total Issue Size | 22,110,955 shares (aggregating up to ₹1,459.32 Cr) |
| Offer for Sale | 22,110,955 shares of ₹2 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
The IPO is categorized as a Book Built Issue and will feature a purely Offer for Sale (OFS) of 22,110,955 shares with a face value of ₹2 each. The price band is set between ₹627 and ₹660 per share, and investors can bid for lots of 22 shares each. The aggregate value of the IPO stands at ₹1,459.32 crore.
INOXCVA’s pre-issue shareholding structure shows a substantial stake held by the Jain family. Upon listing, the company’s stocks will be available on BSE and NSE, broadening the accessibility for various investor segments.
If you want to participate, it’s important to note that the IPO reservations are structured to allot 50% to QIBs (Qualified Institutional Buyers), 35% to retail investors, and the remaining 15% to NIIs (Non-Institutional Investors).
Potential participants must pay attention to these specifics for informed decision-making. The IPO marks a significant milestone for INOXCVA, offering a chance to partake in the growth trajectory of a leader in the cryogenic equipment industry. As the listing date nears, monitoring market dynamics and response to the IPO becomes crucial.
INOXCVA IPO Timeline
Timing is everything regarding IPOs, and INOXCVA’s initial public offering is meticulously scheduled. The IPO opens on December 14, 2023, and the window for bids remains open for a span of five days, concluding on December 18, 2023. Here’s a quick rundown of the critical dates to remember if you’re eyeing the INOXCVA IPO.
- IPO Open Date: The gates open on Thursday, December 14, 2023.
- IPO Close Date: Prospective investors have until Monday, December 18, 2023, to submit their bids, with the cut-off time for UPI mandate confirmation sharply at 5 PM on the same day.
Immediately after the bid closure, the allotment process kicks off. Basis of allotment is set for the following day:
- Basis of Allotment Date: Results of the allotment will be finalized by Tuesday, December 19, 2023.
Following the news on who got their slice of the shares, the initiation of refunds to unsuccessful bidders and the crediting of shares to the demat accounts of the successful ones happens almost simultaneously.
- Initiation of Refunds Date: Unsuccessful bidders can expect to see their funds returned as soon as Wednesday, December 20, 2023.
- Credit of Shares to Demat: For the auction winners, the shares will be credited to demat accounts on Wednesday, December 20, 2023, as well.
The culmination of the IPO process is marked by the public listing of equity shares, allowing the broader market of investors to trade:
- Listing Date: The shares are scheduled to hit the BSE and NSE floors on Thursday, December 21, 2023.
This breakdown presents a clear timeline for the INOXCVA IPO process, ensuring investors are well-equipped to make timely actions and decisions. Remember, keeping a close eye on these dates is crucial for your investment strategy.
INOXCVA IPO Lot Size
When planning to participate in the INOXCVA IPO, it’s crucial to understand the concept of “lot size.” Lot size refers to the minimum number of shares an investor must purchase when applying for shares in an IPO. For INOXCVA, the minimum lot size is 22 shares, indicating the smallest number of shares you can apply for. Below is a detailed breakdown of the minimum and maximum application limits for different categories of investors:
| Application | Lots | Shares | Amount (INR) |
|---|---|---|---|
| Retail (Min) | 1 | 22 | 14,520 |
| Retail (Max) | 13 | 286 | 188,760 |
| S-HNI (Min) | 14 | 308 | 203,280 |
| S-HNI (Max) | 68 | 1,496 | 987,360 |
| B-HNI (Min) | 69 | 1,518 | 1,001,880 |
Once the INOXCVA shares are listed and traded on the mainboard, they can be bought or sold in any quantity, even as single shares. However, during the IPO process, you must adhere to the designated lot sizes or multiples thereof.
For retail investors, you can apply for at least one lot. You can go up to 13 lots, which amounts to a significant investment of 188,760 INR if you aim for the maximum retail investment. Sophisticated High Net-worth Individuals (S-HNIs) have a higher minimum and maximum threshold, starting from 203,280 INR. Notably, Big High Net-worth Individuals (B-HNIs) don’t face an upper limit, with their minimum investment starting at a hefty 1,001,880 INR.
Understanding these limits is vital for potential investors to plan their investments according to their financial capability and investment strategy. It’s also important to highlight that INOXCVA’s issue price falls between 627-660 INR per share. This range will determine the final amount investors need to lock in when the IPO opens on December 14, 2023.
INOXCVA IPO Promoter Holding
The ownership structure of any company embarking on an IPO is a crucial piece of information for potential investors. The promoter holding details reveal significant insights for INOXCVA, whose IPO draws considerable attention.
The promoters of INOXCVA – Pavan Kumar Jain, Nayantara Jain, Siddharth Jain, and Ishita Jain – have maintained a strong command over the company’s shareholding structure, which is evident from the pre and post-issue statistics. Pre-issue, the promoter group held a commanding 99.30% stake in the company. This figure is set to change with the public offering. Upon completion, the post-issue promoter holding will decrease, albeit the promoters will still retain a considerable 75.46% stake. This demonstrates the promoters’ confidence in the company’s continued growth and commitment to maintaining a significant level of control.
This transformation in the stake percentage highlights the capital infusion and the scaling opportunity the IPO will grant INOXCVA.
The breakdown of individual promoter shareholding pre-issue is as follows:
| Name of the Shareholder | Percentage of Shareholding |
|---|---|
| Pavan Kumar Jain | 21.93% |
| Nayantara Jain | 21.23% |
| Siddharth Jain | 45.63% |
| Ishita Jain | 2.72% |
| Devendra Kumar Jain | 5.94% |
| Lata Rungta | 0.84% |
| Manju Jain | 1.01% |
These figures are a testament to the strong familial linkage and the consolidated influence within the ownership circle of INOXCVA.
With IPOs, it’s important to gauge the level of trust promoters place in their venture. The substantial shareholding that will remain with the promoters post-issue is a clear signal of their ongoing trust and leadership, which may influence investor sentiment positively.
INOXCVA IPO Anchor Investors’ Details
The much-anticipated Initial Public Offering (IPO) of INOXCVA has attracted significant attention from the anchor investors’ segment. It’s noteworthy that INOXCVA secured a hefty sum of Rs. 437.80 crores from anchor investors ahead of its public debut. The bid date for these anchor investors was set for December 13, 2023, indicating these early supporters’ strong interest and confidence.
In total, 6,633,285 shares were earmarked for anchor investors, who play a crucial role in the IPO ecosystem. By partaking in the IPO before it opens to the public, anchor investors help determine the price range and gauge the investor appetite.
Here’s a brief overview of the anchor investment details, as outlined in the official report:
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares | 6,633,285 | NA |
Anchor investors indeed get the advantage of being the first to hold the shares, yet they also commit to a lock-in period, which for 50% of their shares ends on January 31, 2024. The remaining shares are under lock-in until April 24, 2024. These lock-in periods ensure that the investors have a stable interest in the company’s performance and do not offload their stocks immediately after the company goes public.
Knowing the lock-in periods is essential for potential investors as it reflects on the stock’s stability post-IPO. It’s a show of good faith and an implied endorsement when respected institutional investors decide to lock a significant portion of their capital in a newly public company.
For those eyeing INOXCVA’s IPO, the participation of anchor investors is a valuable indicator of the company’s market credibility. It is often seen as a vote of confidence from seasoned players in the investment community.
About INOXCVA
With over three decades of industry experience, INOXCVA stands at the forefront of cryogenic equipment and technology. My exploration into this segment reveals a company deeply invested in innovation and excellence. As a market leader, INOXCVA echoes a rich heritage of expertise in design and engineering that has served numerous industrial sectors worldwide.
INOXCVA’s success story originates from a merger between two cryogenic powerhouses: Cryogenic Vessel Alternatives and Inox India. Their prowess is not just limited to a niche; they boast a comprehensive product range covering various industries like Industrial LNG, Oil & Gas, and Cryo Scientific. This diverse array of offerings reflects their dedication to meeting the intricate demands of each sector they serve.
| Aspect | Details |
|---|---|
| Product Range | Extensive offerings across the cryogenic value chain |
| Temperature | Systems operating from 2~200oKelvin (-271 to -73oC) |
| Cryogens | Equipment for Helium, Hydrogen, Nitrogen, Oxygen, and many more |
| Clean Energy | Innovations in LNG, liquid hydrogen, and fusion energy |
| Global Reach | Presence in Brazil, Europe, and India, plus a network in 25 countries |
When I delve into the specifics, I find their products remarkable for their ability to handle the entire cryogenic temperature spectrum, facilitating the secure storage, distribution, and transfer of various cryogens. Their contribution truly shines in the domain of clean energy alternatives, as they leverage their comprehensive design and manufacturing expertise to aid in adopting sustainable energy solutions.
Furthermore, INOXCVA’s global footprint is impressive, with offices and operations strategically placed around the globe, including Brazil, Europe, and India. The extensive after-sales service network that spans over 25 countries ensures they maintain strong relationships with their clients, emphasizing their commitment to full-circle customer support.
In the realm of Industrial Gas, INOXCVA’s role is pivotal; they manufacture and install critical tanks and systems essential for the efficient storage, transport, and distribution of these gases. Their Cryo Scientific division also offers engineered solutions, tackling specialized R&D challenges while delivering turnkey solutions across various applications.
INOXCVA IPO Review
As I dig into the nuances of INOXCVA’s IPO, I am impressed by the company’s iron grip on the cryogenic equipment sector. Their product range is broad, covering everything from industrial LNG to oil & gas, not to mention their involvement in cutting-edge cryo-scientific research. With a commendable track record in design and engineering, INOXCVA stands out as a robust player with stable financial performance, even as they enter the IPO arena on December 14, 2023.
Let’s talk numbers. This IPO aims to raise a hefty Rs 1,459.32 crore solely through an offer-for-sale, putting up to 22,110,955 equity shares on the table. Here’s a neat breakdown of the share allocation:
| Investor Type | Percentage Allocated |
|---|---|
| Qualified Institutional Bidders (QIBs) | 50% |
| Non-Institutional Investors | 15% |
| Retail Investors | 35% |
This strategic distribution indicates INOXCVA’s commitment to a diverse investor base, which should attract plenty of attention across the board.
The company’s relationship with key players like ISRO underscores its dominance in a niche yet burgeoning sector. Considering India’s accelerating efforts in space research, INOXCVA’s partnership with such a prominent organization speaks volumes about its capabilities.
The market’s reception to INOXCVA before it even hits the bourses reflects the anticipation circling this IPO. With whispers of a 40% potential uptick over the expected price band, it’s clear there’s a buzz that can’t be ignored. According to the unofficial market, shares are hot with a premium of Rs 260-270 per share, suggesting a solid opening is more than possible. It highlights the company’s growth trajectory and the appetite for clean energy solutions that provide immediate and long-term potential.
While weighing my own investment decision, it’s imperative to consider the IPO’s fully priced nature, a factor brought up by Swastika Investment. Despite the lack of direct peers in the listing space, INOXCVA’s unique positioning in the clean energy sector, coupled with its consistent dividend history, paints a promising picture for prospective investors.
INOXCVA IPO Reservation
The INOXCVA IPO represents a significant event in the financial market, and it’s crucial to understand the reservation dynamics for different investor categories. With a total Issue Size of Rs 1,459.32 crore, the IPO’s share allocation is strategic, catering to a broad spectrum of investors, including institutional buyers and general retail.
A robust 35% of the Total Shares Offered, amounting to 7,738,835 shares, are earmarked for retail investors. This demonstrates the company’s commitment to ensuring that individual investors play a significant role in its growth narrative. Retail investors have a powerful impact on the IPO’s subscription levels, as evidenced by their enthusiastic initial response, where they oversubscribed their quota 1.77 times. This underscores the confidence they place in INOXCVA’s business potential.
For the more seasoned players, like Qualified Institutional Buyers (QIBs), there’s a 20% reservation with 4,422,191 shares available. With this strategic allocation, INOXCVA aims to strengthen institutional support and attract long-term investors. Anchor Investors received a noteworthy 30% chunk of the IPO, which accounts for 6,633,285 shares available for subscription.
Non-Institutional Investors (NIIs) have not been sidelined, with 15% of the shares, 3,316,644, at their disposal. This category further bifurcates into two segments: investors applying for over ₹10L (bNII) and those applying for less than ₹10L (sNII) receiving 10% and 5% of the shares, respectively.
Here’s a simplified breakdown:
| Investor Category | Shares Offered | Percentage | Maximum Allottees |
|---|---|---|---|
| Anchor Investor | 6,633,285 | 30% | NA |
| QIB | 4,422,191 | 20% | NA |
| Non-Institutional Investors | 3,316,644 | 15% | NA |
| bNII (> ₹10L) | 2,211,096 | 10% | 7,178 |
INOXCVA Financial Information
When assessing INOXCVA’s initial public offering, it’s crucial to delve into the financial data that paints a picture of the company’s economic health. As I sift through the reported figures, I notice a pattern of growth that stands out. Comparing year-on-year financials, there’s a marked increase in assets, jumping from ₹687.20 crore in March 2021 to a significant ₹1,155.81 crore by September 2023.
Here’s a breakdown of the financials in a more digestible format:
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|---|---|---|---|---|
| Assets (₹ Crore) | 1,155.81 | 1,148.36 | 896.75 | 687.20 |
| Revenue (₹ Crore) | 580.00 | 984.20 | 803.71 | 608.99 |
| Profit After Tax (₹ Crore) | 103.34 | 152.71 | 130.50 | 96.11 |
| Net Worth (₹ Crore) | 554.24 | 549.48 | 502.28 | 371.51 |
| Total Borrowing (₹ Crore) | 31.03 | 43.38 | 60.37 |
Analyzing the revenue streams, I’m struck by the increase from ₹608.99 crore in March 2021 to ₹984.20 crore by March 2023, before witnessing a decrease to ₹580.00 crore in September the same year. This fluctuation could be indicative of market trends or internal business cycles, aspects that I need to consider.
It’s impressive to observe the company’s consistent profitability with a Profit After Tax figure that’s improved from ₹96.11 crore to ₹152.71 crore by March 2023, which is a substantial uptrend.
As I look at the company’s equity, the net worth has seen a hearty climb from ₹371.51 crore in March 2021 to ₹554.24 crore by September 2023. This growth in net worth reflects robust internal reserves and a commendable foundation for future ventures.
The borrowing aspect paints an interesting picture.
INOXCVA IPO Subscription Status
The IPO of INOXCVA, India’s leading cryogenic storage tank manufacturer, has grabbed attention with its striking subscription figures. On the first day, the initial public offering was fully subscribed, indicating robust investor confidence. Spearheading the subscriptions were retail investors, demonstrating a keen interest from the general public in INOXCVA’s market debut.
Let’s break down the subscription numbers. Notably, different categories of investors have shown varying levels of enthusiasm:
| Category | Subscription (times) |
|---|---|
| QIB | 0.17 |
| NII | 13.75 |
| bNII | 12.00 |
| sNII | 17.24 |
| Retail | 8.22 |
| Total | 7.11 |
The total applications received were 2,169,167, an impressive 6.17 times the available slots. This fervor is especially pronounced in the non-institutional investor category, with substantial participation from big and small players. The bNII (bids above ₹10L) category was subscribed 12 times, whereas the sNII (bids below ₹10L) category outpaced with a subscription rate of 17.24 times. Undoubtedly, it illustrates a wide spectrum of investor interest cutting across various investment thresholds.
Retail investors weren’t far behind with their numbers, showing an 8.22 times subscription rate. This level of enthusiasm from retail investors signifies a positive sentiment toward INOXCVA’s business potential and future prospects. It’s important to note this engagement, as retail investors tend to be the backbone of public offerings, bringing long-term stability and diverse shareholder composition.
While the figures surely paint an optimistic picture, it’s crucial to maintain a balanced perspective. Market dynamics are constantly in flux, and while subscription rates indicate immediate demand, they don’t necessarily lock in future performance or returns. Still, the overwhelming response is encouraging and points to a potent market debut for INOXCVA. Watching how these numbers translate into market performance upon listing will be key for investors and industry watchers.
INOXCVA IPO Strengths and Weaknesses
Strengths:
- Global Market Leader: The company has emerged as a global market leader in the vacuum-insulated cryogenic industry, specializing in designing, engineering, manufacturing, supplying, and commissioning turnkey packaged systems.
- Growth in Revenues and Profits: The company has shown growth in its revenues and profits over the years, indicating a positive financial trend.
Weaknesses:
- Revenue Concentration: INOXCVA’s top 10 customers accounted for 47% of its FY23 revenue, indicating a significant revenue concentration risk.
- High Working Capital Requirement: The company has a high cash conversion cycle, with 147 days in FY23, which may indicate a high working capital requirement.
- Dependence on Suppliers: The company relies on several suppliers for key components, materials, and customer support services. Any inability of these suppliers to deliver their services could adversely affect the business.
The strengths of the INOXCVA IPO lie in its market leadership and positive financial performance, while its weaknesses include revenue concentration, high working capital requirement, and dependence on suppliers. Investors should consider these factors before making investment decisions.
How to Apply for INOXCVA IPO
To apply for the INOX India Limited IPO in Zerodha, you can follow these steps using the Kite App:
- Tap on Bids.
- Tap on IPO.
- Select the INOX India Limited IPO from the ongoing list of IPOs and tap on Apply.
- Enter the UPI ID.
- Enter the Quantity and the Price. The quantity should be a multiple of the lot size, and the price should be within the issue price range.
- Tap on the undertaking tick box and apply.
- Accept the mandate on the UPI app.
