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Inox India IPO is looking to raise Rs 1,459.32 crore via its initial IPO, which entirely consists of an offer-for-sale (of up to 22,110,955 equity shares by its promoters and other selling shareholders. Inox India Limited is a supplier of cryogenic equipment, majorly tanks. The company provides end-to-end solutions for equipment and systems operating in cryogenic conditions, including design, engineering, manufacturing and installation.

About Inox India:

• Inox India, which was incorporated in 1976.
• The company provides end-to-end solutions for equipment and systems operating in cryogenic conditions, including design, engineering, manufacturing and installation.
• company is into business of specialized cryogenic cylinders, which keep the liquid below 100 degrees centigrade in liquid form. Such cylinders are used to store and keep cold liquids, involved in three segments Industrial gas, LNG and Cryo Scientific.
• Inox India is the largest supplier of cryogenic equipment in India by revenue in Fiscal 2023. Inox India has over 30 years of experience offering solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions.
• Company’s offering includes standard cryogenic tanks and equipment, beverage kegs, bespoke technology, equipment, and solutions as well as large turnkey projects which are used in diverse industries such as industrial gases, LNG green hydrogen, energy, steel, medical and healthcare, chemicals and fertilizers, aviation and aerospace, pharmaceuticals, and construction.
• Fruther Inox India manufactures a range of cryogenic equipment utilized in global scientific research projects.
• Inox India is the 1st Indian company to manufacture a trailer mounted hydrogen transport tank, which was designed jointly with the Indian Space Research Organisation (“ISRO”). Inox India produced and shipped a 238kl liquid hydrogen storage tank for a liquid hydrogen plant in South Korea. They also have recently produced & shipped four 311kl liquid hydrogen storage tanks for another customer in South Korea for the construction of 3 liquid hydrogen plants.
• Due to their engineering expertise, quality product offering and customer service, they have developed a reputed brand, INOXCVA, in the cryogenic equipment industry. In the Fiscal 2023 they have Installed Capacity of 3,100 Equivalent Tank Units (which are cryogenic storage tanks of 10,000 litres), 2.4 million disposable cylinders, 14 certifications from United States, Europe, Australia and other international markets.
• Inox India has 3 manufacturing facilities located at (i) Kalol in Gujarat (ii) Kandla SEZ (iii) Silvassa
• They provided their equipment and systems to over 1,201 domestic customers and over 228 international customers across the 3 divisions.
• Promoters Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, and Ishita Jain are the selling shareholders in the OFS.Alos selling in OFS are , Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta.

Financials: Inox India Limited

Anchor: Inox India IPO

INOX India has raised ₹437.8 crore from anchor investors ahead of its IPO subscription.Global investors including Nomura Trust, Carmignac Portfolio, Abu Dhabi Investment Authority, Natixis International Funds, Goldman Sachs, Volrado Venture, and HSBC Global etc. 12 mutual funds have applied through a total of 28 schemes. Domestic investors include HDFC Mutual Fund, Ashoka Whiteoak, Kotak Mahindra Trustee, SBI Mutual Fund, HDFC Life Insurance, ICICI Prudential Mutual Fund, Nippon Life India, UTI Mutual Fund, HDFC Life Insurance Company, ICICI Prudential Life Insurance etc.

Inox India IPO: Salient Points

• The demand for clean energy are likely to push demand for hydrogen higher, which will push the demand higher for the company in international markets.
• They are a Leading Indian supplier and exporter of cryogenic equipment and solutions with a large portfolio of specialized cryogenic equipment engineered to global quality standards;
• Diversified domestic and international customer base across industry sectors. They were the largest exporter of cryogenic tanks from India in terms of revenue in Fiscal 2023.The company also has built a strong international customer base. Currently they are exporting their products and delivering their services to 66 countries..
• Company has Strong product development and engineering focus.
• Aims to capitalize on opportunities in LNG and hydrogen as part of the global clean energy transition and Capture the full value-chain across the product lines;
• The company management aims to capture new clients in both domestic and international markets, Company intends to expand the standard cryogenic and non-cryogenic equipment business into international markets as well as expanding the large turnkey project business;
• LNG is a transitional fuel, which is being adopted at a phenomenal pace to replace fossil fuel,
• The amount spent in space research is growing at a good pace and they have been associated with ISRO for more than 20 years.

• Current order book of Rs. 1,037 cr provides good visibility
• Half of its revenue is from exports,
• Debt-free status
• Company operates under brand ‘INOXCVA’’, ‘ and has ~60% market share in domestic cryogenic equipment market. The other 2 players are MNCs.
• Gross margin are quite high at 55% along with 21% EBITDA margin.
• Inox India is coming at a PE ratio of 26.2x(FY23) and 19.2x (FY24 annualized).
• GMP as reported on social media is Rs. 445. There has been good activity and demand in the grey market as per SM.
• I intend to apply in Inox India IPO. It seems to have excellent growth prospects, Healthy Financial Performance, focus on clean energy, and is part of Inox Group ( unlisted Inox Air Products & PVR-Inox).
• Do your own diligence please before deciding to subscribe to this IPO.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.