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  • Writer's pictureJatin Agarwal

Inox CVA IPO


Inox CVA Logo

Introduction

Inox CVA Limited, a leading player in the Indian cryogenic equipment market, is gearing up for its initial public offering (IPO) to raise ₹1,459.32 crore. This article delves into the intricacies of the Inox CVA IPO, providing a comprehensive overview for potential investors.


Company Overview

Established in 1989, Inox CVA Limited has emerged as a trusted manufacturer and supplier of cryogenic equipment used in various industries, including liquefied natural gas (LNG), petrochemicals, and steel. The company boasts a strong track record and a diverse product portfolio, ranging from cryogenic tanks and storage vessels to vaporizers and pumps.


Financial Performance

Inox CVA has exhibited consistent growth and profitability. In the fiscal year 2023, the company recorded a net profit of ₹190.67 crore, showcasing its financial resilience. The company's revenue stood at ₹1,248.94 crore in the same fiscal year, reflecting its strong market position.


IPO Overview

The proposed IPO comprises a fresh issue of up to ₹292 crore and an offer for sale (OFS) of up to ₹1,167.32 crore by promoters and existing shareholders. The IPO is scheduled to open on December 14, 2023, and close on December 18, 2023. The price band for the IPO has been set at ₹627 to ₹660 per share.


IPO Details

  • IPO Opening Date: December 14, 2023

  • IPO Closing Date: December 18, 2023

  • Listing Date: December 21, 2023

  • Promoter holding (pre and post IPO): 84.22% [pre-IPO holding]% 74.57% [post-IPO holding]%

  • Lot Size: 22 shares

  • IPO Price Band: ₹627 to ₹660 per share


Objectives of the Issue

Inox CVA intends to utilize the proceeds from the IPO to:

  • Fund its expansion plans: The company aims to invest a significant portion of the proceeds in expanding its manufacturing capacity to cater to the growing demand for cryogenic equipment.

  • Repayment of debt: A portion of the proceeds will be used to reduce the company's debt burden, improving its financial health and stability.

  • Strategic acquisitions and investments: The company plans to utilize the funds for potential acquisitions and investments to strengthen its market position and diversify its product portfolio.

  • General corporate purposes: A portion of the IPO proceeds will be used for general corporate purposes to support the company's growth initiatives.


Grey Market Premium (GMP)

The IPO grey market premium (GMP) for Inox CVA currently stands around ₹45 per share. This indicates that investors in the grey market are willing to pay ₹672 to ₹705 per share for the company's shares, suggesting positive investor sentiment towards the IPO.


Conclusion

Inox CVA's IPO presents an attractive opportunity for investors to gain exposure to a leading player in the Indian cryogenic equipment market. The company's robust financial performance, experienced management team, and focus on expansion and diversification position it well for future growth. However, investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in any IPO.


Disclaimer: All information is provided for educational and informational purposes only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data; however, we have tried our best to present accurate data to our readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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