INOX India entered stock exchanges strongly on Thursday
INOX India made a robust entrance into the stock exchanges on Thursday, seeing its shares kick off at a 43.88 percent premium over the IPO issue price. On the National Stock Exchange (NSE), INOX India’s shares commenced trading at Rs 949.65 per share, surpassing the issue price of Rs 660.
Similarly, on the Bombay Stock Exchange (BSE), the share price debuted at Rs 933.15 apiece. During its subscription window from December 14 to December 18, the IPO of INOX India, priced between Rs 627 to Rs 660 per equity share, witnessed substantial demand. The IPO secured Rs 437.8 crore from anchor investors on December 15.
Preceding the listing, the company’s shares were trading at a Grey Market Premium (GMP) of approximately Rs 500 in the unlisted market. Market analysts suggest that despite the valuations accounting for short-term growth, the compelling listing is warranted due to the company’s strategic standing in a specialized market with a global presence.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, stated, “Inox India entered the secondary market today at a listing price of Rs. 949, marking a gain of around 43 percent over its issue price of Rs. 660. The IPO witnessed an enormous subscription of 61.28x. While it can be considered a respectable listing, it falls slightly short of expectations, attributed to weak market sentiment.”
“Inox India is the foremost supplier of cryogenic equipment in India, capitalizing on the increasing demand in sectors like healthcare, space exploration, and food processing. It boasts a diverse product portfolio and a robust order book. Given its strong fundamentals and an expanding market, the company holds potential for long-term value creation; thus, we recommend holding it with a long-term perspective.
Additionally, initiating fresh buying at lower levels can be contemplated,” Nyati added. The IPO, which garnered an overall subscription of 61 times, saw significant interest from qualified institutional buyers. The retail investor section was subscribed 14.82 times, while the non-institutional investor segment received bids of 52.97 times.
The qualified institutional buyer category experienced an exceptional subscription rate of 147.8 times. It’s important to note that INOX India’s IPO solely consisted of an Offer for Sale (OFS) of 2.21 crore shares. As the issue was entirely an OFS, the company will not receive any proceeds, with all funds directed to the selling shareholders.
INOX India stands as a leading manufacturer of cryogenic tanks, offering solutions encompassing design, engineering, manufacturing, and installation of equipment and systems tailored for cryogenic conditions. The company holds an order book worth Rs 1,036 crore, inclusive of projected revenues from unexecuted segments of existing contracts as of September 2023.
In the six months ending September 2023, INOX India reported a 17 percent Year-on-Year growth in total income to Rs 580 crore, accompanied by a 24 percent surge in net profit to Rs 103 crore. This positive growth trajectory underscores INOX India’s solid performance and resilience in meeting market demands.
With its steady expansion in total income and robust profits, the company is demonstrating promising potential within its sector. Moreover, INOX India’s significant presence in the cryogenic equipment market bodes well for its future prospects.
Its diversified product range and strong order book position the company favorably to capitalize on the escalating requirements across various industries, particularly in critical sectors such as healthcare, space exploration, and food processing.
As the market landscape evolves and demands for specialized equipment continue to surge, INOX India stands poised to leverage its expertise and market position to fuel further growth. The company’s commitment to innovation, coupled with its established track record, positions it as a key player in catering to the evolving needs of these industries.
The substantial oversubscription of INOX India’s IPO signifies the market’s recognition of the company’s potential for sustained growth and profitability. Despite certain market sentiments impacting its initial listing performance, the long-term outlook for INOX India appears promising, with analysts and experts advocating a prudent approach by investors to consider holding the stock for extended periods to reap potential benefits.
Savitri Jindal Emerges as India’s Wealthiest with a Whopping $9.6 Billion Surge in 2023
