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InoxCVA IPO: India’s cryogenic tank maker fully subscribed on first day

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The initial public offering (IPO) of Inox India started on December 14th at a price range of Rs 627-Rs 660 ($7.52 – $7.92) per share and was fully subscribed on the first day, as reported by India Today.

The IPO is scheduled to close on December 18, with the allotment set for December 19 and the stock market listing debut on December 21st.

The company is offering 2.21 crore (22,100,000) shares from initial shareholders, with the aim of raising Rs 1,459.32 crore (Rs 14,593,200,000 or $175,110,373.74) through the IPO. However, the company itself will not receive anything from the sales.

The grey market premium (GMP) on the shares is Rs 445, suggesting an initial listing of Rs 1105. It is important to note that GMP is unregulated and speculative, but it does indicate investors’ expectations of profits beyond the issue price.

What does InoxCVA produce?

InoxCVA, a member of the INOX group, specializes in cryogenic tanks and comprehensive cryogenic solutions for transport and storage. The recent financial results of the group indicated a 17% year-on-year growth in the 2024 financial year. The conglomerate has not conducted an IPO since 2006, when it issued Inox Leisure (now part of the PVR Group).

Parag Kulkarni, the executive director of the group, stated to Press Trust India: “The main purpose of the IPO is to enhance our visibility in the global markets. While globally we are the third largest by volume, after Chart of the US and the Chinese state-owned firm CIMC, from a revenue perspective, we are relatively small.”

India’s tech sector is currently experiencing significant growth, with Apple relocating the production of a quarter of all iPhones to Karnataka and AMD launching a new design center in Bengaluru. Many companies are eager to reduce reliance on China, particularly in light of the frequent changes in export regulations.

Photo credit: DALL-E. This is an AI-generated image.

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