INOXCVA to launch IPO in December after receiving regulatory nod from SEBI

Cryogenic tanks

Inox India Ltd manufacturers of Cryogenic tanks under the brand INOXCVA plans to launch an initial public offering (IPO) in December after receiving clearance from market regulator Securities and Exchange Board of India (SEBI), said the company’s top management on December 5.

The company plans to raise fund through IPO by offer-for-sale (OFS) of up to 22.11 million shares as the promoters plan to sell their shares. In August, the company had filed draft papers for an IPO.

The management said INOXCVA is opting for OFS route as its motive behind the IPO is not to essentially raise capital but bring visibility in the market for the company.

The company is yet to decide on the amount of funds to be raised by the IPO, the officials said, adding that the banks are working on the figure. ICICI Securities and Axis Capital are the book running lead managers for the IPO. The promoters have also not decided what they intend to do with the funds raised as of now.

INOXCVA, which has over 30 years of experience, offers solutions across design, engineering, manufacturing and installation of equipment and systems for cryogenic conditions. The company’s products include standard cryogenic tanks and equipment, beverage kegs, as well as large turnkey projects which are used in diverse industries such as industrial gases, liquified natural gas (LNG) and green hydrogen among others.

As per the DRHP, there are no listed companies in India that engage in a business similar to that of the company.

The company maintains operational facilities across three locations: Kalol (Gujarat), Kandla SEZ (Gujarat), and Silvassa (Dadra and Nagar Haveli).

As of 2022-23, its installed capacity encompassed 3,100 equivalent tank units, equivalent to 10,000-liter cryogenic storage tanks and 2.4 million disposable cylinders. As of March 31st, the company's order book was valued at Rs 1,003.15 crore.

In 2022-23, the company achieved a 17 percent rise in net profit, amounting to Rs 152.71 crore, compared to Rs 130.5 crore in 2021-22. Concurrently, its revenues exhibited a 23.4 percent growth, reaching Rs 965.9 crore in 2022-23, up from Rs 782.71 crore in 2021-22.

However, there was a decline in EBITDA margin from 23.47 percent in 2021-22 to 22.62% in 2022-23. The total debt by March 31st stood at Rs 8.99 crore, marking a decrease from Rs 54.54 crore in the preceding year.

Director Parag Kulkarni said the management plans to see INOXCVA as an international MNC in the next four to five years with its headquarters in India and tentacles in different parts of the world.

He said the company also plans to get into joint ventures with other companies for new technologies in medical field.

Talking about MRI, he said the company has already *cracked* how to work with superconducting magnets and the company could explore working with global companies and take the technology on the global scale.

He added other technologies that the company could work in the future include quantum computers and fusion research projects.

The company plans to invest Rs 200 crores in the next two years in its fourth plant, Chief Executive Officer said.