InoxCVA IPO Closes: Over 60 Times Subscription Received, Check GMP Today – News18

InoxCVA IPO: The initial public offering of InoxCVA, India’s largest domestic cryogenic storage tank maker, has been closed on Monday, December 18. The IPO was opened for public subscription on Thursday, December 14. Till 4:00 pm on the final day of bidding on Monday, the Rs 1,459.32-crore IPO got 60.65 times subscription, receiving bids for 93,86,92,568 shares as against 1,54,77,670 shares on offer.

The category meant for non-institutional investors received 52.69 times subscription, while the quota for retail individual investors (RIIs) got subscribed 14.26 times. The qualified institutional buyers category has been subscribed 147.80 times.

The price band has been fixed at Rs 627-Rs 660 per share.

The IPO allotment is expected to take place on Tuesday, December 19. Its listing on stock exchanges will take place on December 21.


According to market observers, unlisted shares of Inox India are trading Rs 535 higher in the grey market as compared with its issue price. The Rs 535 grey market premium or GMP means the grey market is expecting an 81.06 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

InoxCVA IPO: Should You Subscribe?

Giving a ‘Subscribe-Long Term’ rating to the IPO, brokerage firm Anand Rathi in its note said, “At the upper price band, Inox India Ltd is valuing at P/E (price-to-equity) of 39.2x with a market cap of Rs 5,990.1 crore post issue of equity shares and return on net worth of 27.79 per cent in FY23. On the valuation front, we believe that the company is fairly priced. Thus, we recommend a ‘Subscribe–Long Term’ rating to the IPO.”

The brokerage firm also said Inox India Ltd is well positioned to capture this global market growth with in-house technology as well as LNG product range that includes the entire value chain As on September 2023, the company has an order book of Rs 1,036.6 crore. The ‘Order Book’ comprises anticipated revenues from the unexecuted portions of existing contracts.

InoxCVA IPO Details

This is the first IPO from the Inox group after the Inox Leisure (its multiplex arm) issue almost 17 years back. Inox Leisure is now part of the PVR group.

The minimum lot size for an application is 22 shares. The minimum amount of investment required by retail investors is Rs 14,520.

ICICI Securities Limited and Axis Capital Limited are the book-running lead managers of the Inox CVA IPO, while Kfin Technologies Limited is the registrar for the issue.

The Vadodara-based company’s promoter and director Siddharth Jain told PTI here that at the upper end of the price band, the company is valued at Rs 5,990 crore.

The valuation comes at a steep premium over its likely Rs 1,200-crore annual revenue this fiscal, up from Rs 980 crore in FY23 as it has an order of book of Rs 1,100 crore now.

He said the issue will only be an offer for sale wherein the promoter entity Inox India, which has an equal joint venture with the US-based Air Products known as Inox Air Products, which is the largest manufacturer of industrial and medical oxygen in the country, will be divesting 25 per cent of its equity in the company.

“The main purpose of the IPO is to make us more visible in the global markets. Though globally, we are the third largest by volume at Chart of the US and the Chinese state-owned firm CIMC, from a revenue perspective we are too small,” Parag Kulkarni, who is an old hand with the group and an executive director, told PTI.

The company, founded in 1992, had reported Rs 980 crore topline in FY23 and had earned Rs 152 crore in net margin. The company is setting up the fourth plant at Savli.

It has three plants, including its flagship LNG tanker-making units as also its space programme which supplies to the Isro, CERN and the Iter of France, at Katol near Vadodara.

Both Jain and Kulkarni feel the medium-term growth will come from its LNG tanker business (where it already has over 60 per cent market share and completes with VRV of Italy) as more and more long-haul commercial fleet is being converted to LNG as the primary fuel. Of the 150 LNG tankers on the street, 120 are made by the company and 22 of the 27 LNG stations are also by the company.

As much as 48 per cent of its Rs 980 crore revenue came from exports, and the rest from domestic sales. From a category perspective, close to 71 per cent from industrial gas tanks, 4.2 per cent from cryogenic tanks and 25 per cent from LNG now.

Through the OFS, the company will be selling up to 22,110,955 equity shares. The selling promoter shareholders include Siddharth Jain who will be pairing up to 10,437,355 shares, up to 5,000,000 shares each by the founder and father of Siddharth, Pavan Kumar Jain, and Nayantara Jain.

Selling non-promoter shareholders include Ishita Jain (1,200,000 shares), Manju Jain (2,30,000), Lata Rungta (1,90,000), Bharti Shah, Kumud Gangwal, Suman Ajmera and Rajni Mohatta will be selling 13,400 shares each.

The company employs close to 400 engineers and 1,200 workers of them 7 seven are young women welders.

(The headline and the story have been updated with the latest GMP and subscription data till 4:00 pm)


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