Inox India IPO: 10 things to know before subscribing to Rs 1,459-crore issue

Inox India IPO opens on December 14

Inox India Limited's initial public offering (IPO) will open for subscription on December 14. The Rs 1,459-crore public issue is an offer for sale of 2.21 crore shares.

Here are 10 key things to know before subscribing to the offer:

1. IPO dates

The IPO will open for subscription on December 14 and close on December 18.

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2. Price Band

The price band for the issue has been fixed at Rs 627-660 a share.

3. Offer Details

The IPO is an offer for sale of 2.21 crore shares by promoters Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, and Ishita Jain. Apart from them, Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta, too, will offload shares.

4 Objectives of the issue

The proceeds will go to the selling shareholders, with the company not getting any money through the issue.

5. Lot Size

Investors can bid for a minimum of 22 equity shares and in multiples of 22 after that. The minimum amount of investment required by retail investors is Rs 13,794 [ 22 x 627 (lower price band)). At the upper band, the bidding amount will increase to Rs 14,520.

6. Company profile

Incorporated in 1976, Inox India is a supplier of cryogenic equipment, mainly tanks. The company provides end-to-end solutions for equipment and systems operating in cryogenic conditions, including design, engineering, manufacturing and installation.

7. Financials

For FY23, the company registered a 17 percent on-year growth in net profit at Rs 152.7 crore. Its revenue during the period increased 23.4 percent to Rs 966 crore.

Net profit in the six months ended September FY24 surged nearly 24 percent to Rs 103.3 crore and revenue jumped 16 percent over the last year to Rs 564.6 crore.

8. Lead Managers

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

9.) Risks

i)  The company's business is dependent on three manufacturing facilities. Inox India's operations are vulnerable to breakdown or failure of equipment and industrial accidents. This could lead to interruptions in operations, which may, in turn, adversely affect production schedules, costs, and sales.

ii)  Of the total business, exports constituted 62.18 percent of revenues from operations in the six months ended September 2023. A slowdown in exports due to tariffs, trade barriers and international sanctions could adversely affect the business.

iii) Given the strict quality requirements of the industrial gas sector, any
failure to comply with standards like PESO may lead to the cancellation of existing and future orders.

10. Listing Date

Trading in Inox India Limited shares will commence on December 21, as per the IPO schedule.