InoxCVA IPO
InoxCVA IPO
IPO Open
14 December 2023
IPO Close
18 December 2023
Price Band
₹627 – ₹660
Issue Size
₹1,459.32 Cr
Market Cap
₹5990.39 Cr
Min. Lot Size
22
Face value
₹2
GMP
₹533
INOXCVA IPO Timeline
IPO Open
14 December 2023
IPO Close
18 December 2023
Allotment
19 December 2023
Refund initiation
20 December 2023
Demat transfer
20 December 2023
Listing
21 December 2023
About INOXCVA (INOX India Limited)
INOXCVA, a subsidiary of INOX India Pvt. Ltd., has established itself as a leading global player in cryogenic storage and transportation. Its journey, however, started much more modestly, in the year 1991.
INOXCVA began its operations in 1991 as a small-scale manufacturer of vacuum-insulated cryogenic storage tanks. The company initially focused on catering to the needs of the Indian market, particularly in the healthcare and industrial sectors. During this period, INOXCVA established itself as a reliable supplier of high-quality cryogenic equipment, earning a reputation for its commitment to innovation and customer service.
As the demand for liquefied gases grew worldwide, INOXCVA recognized the potential for international expansion. In the early 2000s, the company began exporting its products to various countries across Asia, Africa, and Europe. This period also saw INOXCVA venturing into new product segments, such as transportation tanks and vaporization systems.
The past decade has been a period of significant growth and innovation for INOXCVA. The company has invested heavily in research and development, leading to the creation of several groundbreaking cryogenic solutions. Notably, INOXCVA became:
- The first Indian company to manufacture a trailer-mounted hydrogen transport tank in collaboration with the Indian Space Research Organisation (ISRO).
- A developer of innovative systems for cryogenic storage and handling, particularly in challenging fields like space research and cryogenic propulsion systems.
Today, INOXCVA stands as the world’s second-largest manufacturer of cryogenic storage and transport tanks. The company boasts a global presence, with offices and manufacturing facilities in India, China, and the United States. INOXCVA remains committed to providing its customers with cutting-edge cryogenic solutions, ensuring its position as a leader in this dynamic industry.
Key Milestones
- 1991: INOXCVA is founded in India.
- 2000s: INOXCVA begins exporting its products internationally.
- 2010s: INOXCVA became the first Indian company to manufacture a trailer-mounted hydrogen transport tank.
- 2010s: INOXCVA develops innovative systems for space research and cryogenic propulsion systems.
- Present: INOXCVA is the world’s second-largest manufacturer of cryogenic storage and transport tanks.
Future outlook
INOXCVA remains optimistic about the future of the cryogenic industry. The company is well-positioned to capitalize on the increasing demand for liquefied gases in various sectors, including energy, healthcare, and electronics. With its commitment to innovation and customer service, INOXCVA is confident that it will continue to be a leading force in the cryogenic market for years to come.
About InoxCVA IPO
Inox CVA, a prominent name in India’s cryogenic equipment landscape, gears up for its IPO on 14 December 2023. This entirely offer-for-sale (OFS) initiative aims to raise Rs. 1,459.32 crores, offering a chance to tap into a sector projected to grow at over 7% annually. Boasting a robust order book exceeding Rs. 1,000 crores and backed by rising demand from the healthcare, chemicals, and electronics industries, the cryogenic equipment market presents a promising avenue for investment.
INOXCVA price band is set between Rs. 627 and Rs. 660 per share, the minimum investment for retail investors stands at Rs. 13,954. Inox CVA reported strong revenue and profitability growth for the six months ended September 30, 2023, showcasing its potential for continued success.
Offering Details:
- Issue Type: Book Built Issue
- Size: Rs. 1,459.32 crores
- Composition: Entirely Offer for Sale (2.21 crore shares)
- Key Dates:
- Subscription: December 14-18, 2023
- Allotment: December 19, 2023 (tentative)
- Listing: December 21, 2023 (tentative)
- Price Band: Rs. 627-660 per share
- Minimum Investment:
- Retail: Rs. 14,520 (22 shares)
- NII: Rs. 203,280 (14 lots)
- bNII: Rs. 1,001,880 (69 lots)
- Lot Size: 22 shares and its multiples
- Book Running Lead Managers: ICICI Securities Limited, Axis Capital Limited
- Registrar: Kfin Technologies Limited
Industry Overview
INOX CVA operates within the cryogenic equipment market, a niche but rapidly growing sector with significant potential. Here’s a breakdown of the industry overview:
Market Size and Growth:
- Global cryogenic equipment market was valued at USD 19.5 billion in 2023 and is expected to reach USD 28.7 billion by 2028, exhibiting a CAGR of 7.3%.
- This growth is fueled by rising demand from various industries, including:
- Healthcare: Cryogenic equipment plays a vital role in medical research, vaccine storage, and cryosurgery.
- Chemicals and Petrochemicals: Used in gas separation, liquefaction, and transportation of industrial gases like oxygen, nitrogen, and hydrogen.
- Electronics and Semiconductors: Cryogenic processes are crucial for chip manufacturing and testing.
- Energy and Infrastructure: For liquefaction and storage of natural gas (LNG) and other energy sources.
- Space exploration: Crucial for cryogenic propulsion systems and cryostorage of materials.
Key Trends and Opportunities:
- Increasing adoption of green technologies: Growing demand for hydrogen and LNG as clean energy sources fuels the need for efficient cryogenic storage and transportation solutions.
- Focus on miniaturization and energy efficiency: Developments in cryogenic technology are leading to smaller, more energy-efficient equipment, creating new market opportunities.
- Expansion into emerging markets: Rising demand from countries like India and China presents significant growth potential for cryogenic equipment manufacturers.
INOX CVA’s Position in the Market:
- Leading Indian player: INOX CVA is a prominent manufacturer and supplier of cryogenic equipment in India, with a strong track record of revenue and profit growth.
- Diversified product portfolio: Offers a wide range of equipment, including tanks, vessels, gas separation plants, and liquefaction units, catering to diverse industry needs.
- Global presence: Has operations in the USA, Brazil, Canada, Europe, and India, providing strong geographic diversification.
- Focus on innovation and R&D: Invests in research and development to develop new technologies and improve existing products.
Challenges and Risks:
- Competition: The market is increasingly competitive, with both established players and new entrants vying for market share.
- Economic fluctuations: Global economic downturns could impact demand for cryogenic equipment.
- Technological advancements: Rapid advancements in cryogenic technology could lead to product obsolescence.
Peer Analysis
INOX CVA operates in the niche but growing cryogenic equipment market, facing competition from both established players and nimble newcomers. Here’s a structured peer analysis across key parameters:
Financial Performance:
- INOX CVA: Strong revenue and profit growth, healthy order book exceeding Rs. 1,000 crores, positioning them well in the Indian market.
- Indian Peers:
- Linde India: Dominant player with strong financials and a focus on gas separation and LNG.
- Air Liquide India: Diversified portfolio with a strong presence in healthcare and industrial gases.
- KelAir India: Growing player with a niche focus on oxygen and medical equipment.
- Global Peers:
- Air Products & Chemicals: Industry leader with a global reach and strong financial performance.
- Chart Industries: Major player with a diverse product range and a focus on LNG equipment and engineering.
- Cryogenic Industries: Niche expertise in custom-built solutions and large-scale projects, primarily in the US market.
Market Share & Reach:
- INOX CVA: Leading player in India, expanding internationally with presence in USA, Brazil, and Europe.
- Indian Peers:
- Linde India: Largest market share in India.
- Air Liquide India: Strong regional presence.
- KelAir India: Growing market share with a regional focus.
- Global Peers:
- Air Products & Chemicals: Global leader with extensive network.
- Chart Industries: Strong presence in North America and Europe.
- Cryogenic Industries: Significant presence in the US LNG market.
Product Portfolio & Expertise:
- INOX CVA: Offers a wide range of equipment including tanks, vessels, gas separation plants, and liquefaction units catering to diverse industries like healthcare, chemicals, electronics, and energy.
- Indian Peers:
- Linde India: Diversified portfolio with expertise in gas separation and LNG.
- Air Liquide India: Focus on healthcare and industrial gases.
- KelAir India: Focus on oxygen and medical equipment.
- Global Peers:
- Air Products & Chemicals: Broadest portfolio with expertise in various technologies.
- Chart Industries: Strong in LNG equipment and engineering.
- Cryogenic Industries: Focus on custom-built solutions and expertise in specific applications.
Innovation & Technology:
- INOX CVA: Invests in R&D to develop energy-efficient and miniaturized equipment.
- Indian Peers:
- Linde India: Focus on research and development for new technologies and applications.
- Air Liquide India: Investing in digitalization and automation.
- KelAir India: Developing niche solutions for specific industries.
- Global Peers:
- Air Products & Chemicals: Strong R&D investments with a focus on clean technologies.
- Chart Industries: Developing innovative LNG liquefaction and storage solutions.
- Cryogenic Industries: Collaborations with universities and research institutes for technological advancement.
Challenges & Risks:
- Competition: All players face competition from established and emerging players, both in India and globally.
- Economic Fluctuations: Global economic downturns can impact demand for cryogenic equipment across the board.
- Technological Advancements: Rapid advancements in cryogenic technology could lead to product obsolescence for any company.
Overall:
INOX CVA demonstrates strong financial performance and a leading position in the Indian market. While they face competition from established global players with broader portfolios and advanced technologies, their focus on innovation and international expansion positions them for continued growth. Understanding this competitive landscape is crucial for informed investment decisions.
InoxCVA IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | 6,633,285 (30.00%) |
| QIB Shares Offered | 4,422,191 (20.00%) |
| NII (HNI) Shares Offered | 3,316,644 (15.00%) |
| bNII > ₹10L | 2,211,096 (10.00%) |
| sNII < ₹10L | 1,105,548 (5.00%) |
| Retail Shares Offered | 7,738,835 (35.00%) |
| Total Shares Offered | 22,110,955 (100%) |
InoxCVA IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| 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 |
Financials of InoxCVA
| Mar 2023 | Mar 2022 | Mar 2021 | |
|---|---|---|---|
| Assets | 1,148.36 | 896.75 | 687.2 |
| Revenue | 984.20 | 803.71 | 608.99 |
| Profit After Tax | 152.71 | 130.5 | 96.11 |
| Net Worth | 549.48 | 502.28 | 371.51 |
| Total Borrowing | 43.38 | 60.37 |
- Assets: 28.04% surge, propelling expansion and operational growth.
- Revenue: 18.02% climb, highlighting strong market presence and sales momentum.
- Profit After Tax: 17.07% leap, showcasing impressive profitability and efficient management.
- Net Worth: 9.74% increase, demonstrating financial strength and a robust balance sheet. Total
- Borrowing: 28.04% decrease, underscoring a commitment to debt reduction and financial improvement.
Overall: INOX CVA’s financials paint a picture of consistent growth, robust profitability, and a focus on financial discipline. These results are likely to be well-received by investors and industry analysts.
Objective of the IPO
The primary goal is to facilitate the sale of up to 22,110,955 Equity Shares by the existing Shareholders.
Get the advantages associated with listing Equity Shares on Stock Exchanges.
The company anticipates that listing its Equity Shares will boost visibility, improve brand image, and establish a public market for the shares in India.
After deducting Offer expenses and taxes, the existing Shareholders will receive the entire proceeds from the Offer.
Promoter Share Holding Pattern
Pre IPO
Post IPO
FAQ on InoxCVA IPO
The InoxCVA IPO is scheduled to open for subscription on December 14, 2023.
The closing date for the InoxCVA IPO is December 18, 2023.
InoxCVA price band is set at ₹627 to ₹660 per share.
The issue size of InoxCVA IPO is ₹1,459.32 crores.
The market cap of InoxCVA is ₹5990.39 crores as per the IPO details.
The minimum lot size for retail investors in InoxCVA IPO is 22 shares.
The GMP (Grey Market Premium) for InoxCVA IPO is ₹533.
The tentative listing date for InoxCVA IPO is December 21, 2023.
The Book Running Lead Managers for InoxCVA IPO are ICICI Securities Limited and Axis Capital Limited.
The minimum investment for retail investors in InoxCVA IPO is ₹14,520.
Retail investors are offered 35% of the total shares in the InoxCVA IPO.
The lot size for InoxCVA IPO is 22 shares, and its multiples.
As of the latest financials, the total borrowing for InoxCVA has decreased by 28.04%, indicating a commitment to debt reduction.
The primary objective of the InoxCVA IPO is to facilitate the sale of up to 22,110,955 Equity Shares by existing shareholders and to gain advantages associated with listing on stock exchanges.
INOXCVA has a global presence with offices and manufacturing facilities in the USA, Brazil, Canada, Europe, and India, making it a significant player in the cryogenic market worldwide.
