INOX India IPO witnessed strong demand during its subscription period, raising Rs 437.8 crore from anchor investors on December 15. On Thursday, INOX India made a strong debut on the stock exchanges, with shares opening at a premium of 43.88% over the IPO issue price. This article will provide an overview of INOX India’s IPO debut and its potential for long-term value creation.
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INOX India IPO Details
INOX India IPO had a price band of Rs 627 to Rs 660 per equity share. The IPO was subscribed 61 times overall, with significant interest from qualified institutional buyers. The retail investor portion was subscribed 14.82 times, while the non-institutional investor segment garnered bids of 52.97 times. The qualified institutional buyer category witnessed an overwhelming subscription of 147.8 times. As the issue was solely an Offer for Sale (OFS), the company will not receive any proceeds, and all funds will go to the selling shareholders.
INOX India Overview
INOX India is a leading cryogenic tank manufacturer, providing solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions. The company boasts an order book of Rs 1,036 crore, including anticipated revenues from unexecuted portions of existing contracts as of September 2023. In the six months ending September 2023, INOX India reported a 17% YoY growth in total income to Rs 580 crore, accompanied by a 24% increase in net profit to Rs 103 crore.
Despite valuations factoring in near-term growth, analysts believe that the strong listing is justified due to the company’s strategic position in the niche market with a global footprint.
Shivani Nyati, Head of Wealth, Swastika Investment Ltd, recommends holding INOX India with a long-term view and fresh buying at a lower level.
INOX India’s leading position in cryogenic equipment supply in India is benefiting from rising demand in sectors like healthcare, space exploration, and food processing. The company boasts a diversified product portfolio and a strong order book, indicating its potential for long-term value creation.
INOX India IPO debut saw a strong listing at a premium of 43.88% over the issue price. With its leading position in cryogenic equipment supply and strong fundamentals, the company has the potential for long-term value creation.
Analysts recommend holding INOX India with a long-term view and fresh buying at a lower level for investors. For those who missed out on the IPO, it may be worth keeping an eye on INOX India’s performance and considering an investment in the future.