InoxCVA IPO Ends Today: The initial public offering (IPO) of InoxCVA, which makes the most cold storage tanks in India, will end on Monday, December 18. The public could sign up for the IPO on Thursday, December 14. As of 10:37 a.m. on Monday, the last day of buying for the Rs 1,459.32-crore IPO, bids for 13,73,10,272 shares were received, while 1,54,77,670 shares were still on offer. This means that the IPO got 8.87 times its registration rate.
The group for non-institutional investors was subscribed to 19.21 times, and the limit for retail individual investors (RIIs) was subscribed to 9.17 times. The group for approved institutional buyers has been signed up for 0.59 times.
The price range for each share is now Rs 627 to Rs 660.
The opening for the IPO is planned for Tuesday, December 19. The stock market will start to trade it on December 21.
InoxCVA IPO Ends Today
Market watchers say that unregistered shares of Inox India are selling Rs 555 more than their issue price on the grey market. The Rs.555 grey market premium, or GMP, shows that the grey market thinks the public issue will bring in 84.91% more money. The GMP changes all the time based on how the market feels.
“Grey market premium” means that buyers are willing to pay more than the price of the issue.
Should You Subscribe to the InoxCVA IPO?
A note from trading firm Anand Rathi rated the IPO as “Subscribe-Long Term.” It said, “At the upper price band, Inox India Ltd is valuing at P/E (price-to-equity) of 39.2x with a market cap of Rs 5,990.1 crore post issue of equity shares and return on net worth of 27.79% in FY23.” We think that the company is priced fairly when it comes to its value. So, we give the IPO a rating of “Subscribe–Long Term.”
The trading company also said that Inox India Ltd is well-equipped to take advantage of this growth in the global market thanks to its own technology and a range of LNG products that cover the whole value chain. The company has orders worth Rs 1,036.6 crore as of September 2023. The “Order Book” lists the expected income from the parts of current contracts that haven’t been carried out yet.
More on the InoxCVA IPO
After Inox Leisure (its movie theater arm) went public almost 17 years ago, this is the Inox group’s first IPO. The PVR group now owns Inox Leisure.
For an application, you need at least 22 shares to make a lot. Retail buyers need to put at least Rs 14,520 into an account.
The book-running lead managers for the Inox CVA IPO are ICICI Securities Limited and Axis Capital Limited. Kfin Technologies Limited is in charge of running the issue.
Founder and CEO Siddharth Jain told PTI that the company is worth Rs 5,990 crore at its highest price.
The company is expected to make around Rs 1,200 crore this year, up from Rs 980 crore last year. This is because it has orders worth 1,100 crore already.
He said that there would only be an offer to sell, and the promoter company, Inox India, which has a joint venture with US-based Air Products called Inox Air Products and makes more industrial and medical oxygen than any other company in the country, would be selling 25% of its shares in the company.
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“The main goal of the IPO is to raise our profile on the world markets.” We are the third biggest by volume in the world, after Chart of the US and the Chinese state-owned company CIMC. However, we are too small in terms of income, according to Parag Kulkarni, an executive director of the group and a longtime member of the group.
The business, which began in 1992, made a total of 980 crore rupees in sales in FY23 and 152 crore rupees in net income. At Savli, the company is building its fourth plant.
The company has three plants in Katol, which is near Vadodara. These include its main LNG tanker-building units and a space program that provides parts to ISRO, CERN, and the French Space Agency.
Both Jain and Kulkarni think that the company’s LNG ship business will grow in the medium term. It already has over 60% of the market and competes with VRV of Italy in this area. This is because more and more long-haul commercial fleet is switching to LNG as their main fuel. 120 of the 150 LNG trucks on the road are ones that the company makes. The same is true for 22 of the 27 LNG stations.
Up to 48% of its Rs 980 crore income came from exports. The rest came from sales in India. About 71% come from industrial gas tanks, 4.2% from cold tanks, and 25% from LNG.
The company will sell up to 22,110,955 stock shares through the OFS. Siddharth Jain is one of the selling major owners. Nayantara Jain and Pavan Kumar Jain will each contribute up to 5,000,000 shares, totaling 10,437,355.
Ishita Jain (1,200,000), Manju Jain (2,30,000), Lata Rungta (1,90,000), Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta are all selling shares. Each of them will sell shares.
Nearly 400 engineers and 1,200 other workers work for the company. Of these, 77% are young women welders.
