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INOX India (INOX), the largest domestic supplier of cryogenic equipment, made a strong stock market debut on Thursday with its shares listing at Rs 949.65 on the NSE, a premium over 44 per cent over the issue price of Rs 660.
On the BSE, the stock listed 41 per cent higher over the issue price at Rs 933.15.
The stock extended gains to Rs 979, up 48 per cent against its issue price. At 10:01 AM; INOX was quoting at Rs 937.75, after hitting a low of Rs 910 in intra-day trade. A combined 6.4 million equity shares had changed hands on the NSE and BSE.
The IPO had received strong response from all investor categories and was subscribed 61.28 times.
Qualified institutional buyers (QIBs) were in the leading position buying 147.80 times the allotted quota, while high networth individuals (HNIs) and retail investors quota was subscribed for 53.20 times and 15.3 times.
Considering its consistent financial growth, healthy return ratios, shift in mix towards margin accretive segments (large turnkey projects), customer stickiness, brokerages including Motilal Oswal, Geojit Financial, SBICAP Securities, Nirmal Bang and Ventura Securities had given a ‘subscribe’ rating to the IPO.
INOX is India’s largest supplier and amongst the top 10 global players offering customized cryogenic solutions across clean energy space.
It manufactures cryogenic tanks/ systems for storage, transportation and distribution of Industrial Gas (64 per cent of revenue), LNG (31 per cent) and Cryo Scientific research application (5 per cent).
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The company’s order-book stands at Rs 1,040 crore (1.8x FY23 OB/Rev) of which Cryo Scientific forms 22 per cent, indicating huge opportunity in this niche segment.
It is the first Indian firm to manufacture trailer mounted hydrogen transport tank designed jointly with ISRO.
Analysts at MOFSL said they like INOX given its presence in the niche space of cryogenic equipment, leading position, diversified portfolio and robust financials.
It will benefit from a shift towards cleaner fuels, higher investment in electronics/space sectors & improving revenue mix towards high margin projects, the brokerage said in a note.
INOX is the world’s leading provider of customized cryogenic solutions to global customers across the clean energy space.
Increasing demand across the globe for clean fuels, industrial gases and high demand for cryogenic gases will drive the company’s growth going forward. It has significantly improved its return ratios in the last three financial years, analysts at SBICAP Securities said.
Analysts at Indsec said INOX will maintain its growth trajectory owing to increasing adoption of cleaner fuels like LNG and hydrogen fuel; healthy order book with strong execution capabilities; increasing participation in large turnkey projects (over Rs 5 crore) like ITER will derive better margins.
